Universal Music UK is changing its company structure from October 1. This will include the merger of two renowned London-based frontline labels: Island Records UK and EMI.<\/p>\n
Louis Bloom<\/strong> will be the president of the newly-named Island EMI Label Group;<\/strong> Bloom will move into the role from his current position as President of Island Records UK<\/strong>.<\/p>\n The Island EMI Label Group<\/strong> will form one of two “powerhouse frontline label groups”, Universal Music UK’s Chairman\/CEO, David Joseph<\/strong>, announced in an internal memo today (July 9).<\/p>\n The other will be Polydor Label Group<\/strong>, led by Ben Mortimer<\/strong> as President.<\/p>\n Polydor Label Group<\/strong> will house A&R-led labels including Capitol (UK), led by Jo Charrington<\/strong> as President, plus 0207 Def Jam, led by President Alec Boateng.<\/strong><\/p>\n Elsewhere at the new Universal Music UK (UMUK):<\/p>\n Jo Charrington’s<\/strong> former Co-Managing Director at EMI, Rebecca Allen<\/strong>, will now lead a new division at Universal Music UK: The Audience & Media Division (AMD)<\/strong>, which will support all of the company’s labels.<\/p>\n Writing in his staff memo today, UMUK boss David Joseph<\/strong> said of the new AMD division: “Becky [Allen] and I have spent a lot of time discussing this vision to create something revolutionary \u2014 an industry first where every type of media is seamlessly integrated. We are assembling an elite team making this our largest division.”<\/p>\n The Audience & Media Division<\/strong> will house:<\/p>\n Joseph<\/strong> added that AMD would “revolutionise how we deliver for our artists and become a new Centre of Excellence at Universal Music UK<\/strong> alongside, among others, the award-winning partnerships team at Globe<\/strong> and a new combined eCommerce and CRM team<\/strong>“.<\/p>\n The combination of two frontline label groups at Universal Music UK<\/strong> mirrors a similar structure at Universal Music<\/strong> in the US, which since the start of this year<\/a> has housed the East Coast-based Republic Corps<\/strong> (led by Monte Lipman) and the West Coast-based\u00a0Interscope Capitol Labels Group\u00a0(ICLG)<\/strong>.<\/p>\n Like that US restructuring, the UK restructuring will result in an as-yet-unconfirmed number of lay-offs at Universal<\/strong>.<\/p>\n David Joseph<\/strong> confirmed in his memo today: “These changes mark an exciting new chapter for our company, and I am confident they will position us for even greater success.<\/p>\n “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. It saddens me that we will have to part ways with some incredible colleagues who have been instrumental in our journey.”<\/p>\n However, Joseph<\/strong> was positive on what the changes would mean for the future of Universal’s<\/strong> labels and its artists in the UK.<\/p>\n “As a company, we must continue to be forward-looking, innovative, and bold,” he said. “Developing artists now requires more creativity and patience than ever before.”<\/p>\n Added Joseph<\/strong>: “Thank you for your understanding and continued dedication as we move towards this new structure, one which I know is right for our business and our artists.”<\/p>\n On a global level, Universal Music Group<\/strong> is currently undertaking a corporate “redesign” program<\/a> which it says will result in EUR \u20ac75 million (USD $81 million)<\/strong> of annual cost-savings in 2024 vs. 2023.<\/p>\n Those annual cost savings (vs. 2023) will then expand to\u00a0\u20ac125 million<\/strong>\u00a0in 2025, before eventually reaching\u00a0\u20ac250 million<\/strong> by the end of 2026, the company has told its investors.<\/p>\n Universal is not alone in restructuring: Warner Music Group<\/strong> has committed to cutting<\/a> 600 employees<\/strong> by the start of September this year, though the majority of these layoffs will take place via WMG’s offloading of its owned media properties, UPROXX\u00a0<\/strong>and\u00a0HipHopDX.<\/strong><\/p>\n Warner Music Group global CEO, Robert Kyncl<\/strong>, has said this restructure will “free up more funds to invest in music and accelerate our growth for the next decade”.<\/p>\n
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