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Universal Music Group Announces Layoffs And Cost-Cutting

By Nithya Bose in Business News, posted February 29, 2024

Universal Music Group has announced plans to cut jobs and costs after a significant increase in earnings for 2023.

The music giant reported a net profit of 1.26 billion euros ($1.37 billion) for the year, a substantial rise from the 782 million euros seen in 2022.

The final quarter of the year showed a nine percent year-on-year increase in revenue, totaling 3.21 billion euros.

This growth was driven by a 15 percent increase in subscription revenue to 1.14 billion euros and a 5.6 percent rise in streaming revenue, reaching 395 million euros during the same period.

Recorded music revenue also saw a significant uptick, with a 15 percent increase to 2.42 billion euros.

Universal's annual revenue climbed to 11.11 billion euros, marking an 11 percent increase when adjusted for constant currency.

The company's adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) reflected a 15 percent rise to 2.37 billion euros.

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In line with its strategic restructuring, Universal Music aims to achieve 250 million euros in annual savings by 2026.

The company attributes these efficiencies to both reductions in workforce and other operational improvements.

The initial phase of this plan is expected to realize 125 million euros in savings by 2025, with 75 million euros anticipated within the current year.

Universal Music plans to offer a final dividend of 0.27 euros per share, bringing the total dividend for the year to 0.51 euros per share.

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