Warner Music Group, the record label behind major music artists like Cardi B and Ed Sheeran, has announced a company-wide layoff of about 4% of its global workforce, or 270 employees. However, all employees working in the company’s Web3 and AI-related initiatives will be retained.

The label’s CEO, former YouTube chief business officer Robert Kyncl, said the layoffs were necessary to take advantage of opportunities ahead and support new tech initiatives, with priority given to Web3 efforts and future experimentations with AI. Warner Music Group has actively pursued partnerships and pilot programs with Web3-native projects and companies, including OpenSea, LGND Music, DressX, and The Sandbox, among others, over the past eighteen months.

The layoffs come at a time when tech and media companies across the board are slashing huge portions of their workforces amid unrelenting increases in interest rates and souring economic conditions. As part of this trend, Disney recently slashed its entire 50-person metaverse unit, while Google spared its entire Web3 team when it let go of 12,000 employees in January. Warner Music Group's embrace of cutting-edge technology, under Kyncl's leadership, is seen as critical for its future success.

(By Sander Lutz)