Universal Music Group’s strategic reorganisation continues today, with the announcement of its plans for Universal Music UK, including an unconfirmed number of layoffs.
The plans also include new combinations for some famous label brands, announced by chairman and CEO David Joseph in a message to staff this afternoon as creating “two new powerhouse frontline label groups”.
The first of those is Island EMI Label Group, led by president Louis Bloom, which includes Island and EMI. The second is Polydor Label Group, led by president Ben Mortimer, including Capitol (under president Jo Charrington) and 0207 Def Jam (under president Alec Boateng).
In the announcement, Joseph stressed that the individual labels will continue to have “creative autonomy” under the new structure, which kicks in from 1 October.
The new groups mirror the changes put in place earlier this year in UMG’s business, where the consolidation of labels also focused on two groups: Interscope and Republic.
One prominent name missing from the announcement is Alex Boateng, who has been co-president of 0207 Def Jam with his twin brother Alec. However, Music Ally understands that Alex is taking a new role internationally within UMG rather than leaving the company.
Today’s announcement also included the announcement of a new Audience and Media division, led by president Rebecca Allen, who was previously co-president of EMI Records. This division will combine Universal UK’s media, audience and digital strategy and insight teams.
“Becky and I have spent a lot of time discussing this vision to create something revolutionary — an industry first where every type of media is seamlessly integrated. We are assembling an elite team making this our largest division,” promised Joseph.
However, like most re-orgs, all of these steps come with a ‘but’.
“While the vast majority of our team will continue to be a part of our business going forward, some roles are impacted by the proposed structural changes,” wrote Joseph.
“It saddens me that we will have to part ways with some incredible colleagues who have been instrumental in our journey.”
UMG has not announced a figure for how many people will be affected, but it is starting a consultation period today for staff whose roles are at risk, which will last until mid-September.
Under UK law, companies must follow such ‘collective consultation’ rules if they are planning to make 20 or more employees redundant, which gives a baseline for UMG’s planned layoffs.
“As a company, we must continue to be forward-looking, innovative, and bold. Developing artists now requires more creativity and patience than ever before,” wrote Joseph in the introduction to his message.
UMG is not the only major label to be making redundancies in 2024. In February, Warner Music Group announced that it was laying off around 10% of its global workforce – 600 people – following 270 departures in March 2023.
