Universal Music Group (UMG) has revealed its plans for 2024 and they include a new “artist-centric” streaming model and job cuts. Anonymous sources claim that the recorded music department will be the most affected by the job losses, but UMG has not disclosed how many positions will be cut. Last year, the company employed 10,000 people globally.
The news follows a pattern of cost-cutting measures in the music industry, with Warner Music reducing its workforce by 4% in 2022 and Spotify cutting 17% of jobs in December of the same year. However, according to Music Week, UMG is unlikely to make cuts on the same scale as Spotify.
UMG has launched an “artist-centric” streaming model in partnership with Deezer. The new model aims to reduce AI-generated content and demonetise “non-artist noise content” from the royalty pool. UMG has also removed a viral AI-generated Drake and The Weeknd collaboration from streaming services as part of its efforts to reduce the impact of AI on the industry.
According to Bloomberg, UMG’s new streaming model may take a while to make an impact, so CEO Sir Lucian Grainge can satisfy shareholders by “trimming costs,” which may explain the job cuts. Grainge referred to these redundancies as “cut to grow” in an October earnings call.
UMG did not respond to Bloomberg’s request for comment, but a spokesperson told Music Week that the company is investing in future growth by building its e-commerce and direct-to-consumer operations, expanding geographically, and leveraging new technologies while maintaining its industry-leading investments in A&R and artist development. The spokesperson added that the company aims to remain “nimble and responsive to the dynamic market” while realizing the benefits of its scale
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