Universal Music Group Shakeup: Def Jam, Polydor and Interscope Executives to Exit as 2024 Restructuring Plan Concludes
Universal Music Group (UMG) has initiated the final phase of a three-part restructuring and cost-cutting plan first announced in 2024, with several high-profile executives set to exit the company, sources told Billboard. According to Billboard, those leaving their current posts include Ben Mortimer, president of Polydor Records in the U.K.; Tunji Balogun, chairman and CEO of Def Jam Recordings; Nicole Wyskoarko, president and head of urban A&R at Interscope Geffen A&M; Sam Riback, co-president and head of pop/rock A&R at Interscope Geffen A&M; Rebecca Allen, chief artist and strategy officer at UMG U.K.; Mark Crossingham, managing director of UMG Ireland; Hannah Neaves, president of UM Recordings UK; and Ivo Sacchi, managing director of UMG in Switzerland and Austria. Neaves and Allen will take on consultancies with the company, while Balogun will finish out his role for the rest of the year. Other senior executives are also expected to be part of the cuts, which began this week. Warner Music Beat, citing Music Business Worldwide, also reported that Republic Records chairman and CEO Jim Roppo will leave the company as part of the leadership changes (GSM reports Roppo's move to Warner separately).
Some executives will take on new or expanded roles. Tyler Arnold, chairman and CEO of Mercury Records, and Jeffrey Remedios, president and CEO of Republic Collective, will take on new leadership roles at Republic Records, effective immediately. Island Records co-CEOs Imran Majid and Justin Eshak will expand their roles within the East Coast labels, and Laura Carter, Ramon Alvarez-Smikle and Michelle An will take on broader leadership roles at Interscope Geffen A&M. Nickie Owen will take on an expanded role as president of global marketing at UMG U.K., Ulf Zick will take over UMG's operations in Switzerland and Austria, and Nick Younger will become managing director of UMG Ireland. The exact shape of some of the new roles is not yet clear and is expected to be announced in the coming weeks.
The departures are a continuation of the cost-cutting plan UMG announced in February 2024. On a 2024 earnings call, the company described the plan as a "strategic organizational redesign" that would result in 250 million euros (about $271 million) in annual savings by the end of 2026, including 75 million euros (about $81.3 million) of reductions in 2024 and 125 million euros (about $135.5 million) in 2025. The reorganization shifted the company into a loose East Coast-West Coast alignment, with the East Coast organized under the REPUBLIC umbrella headed by Monte Lipman and the West Coast under the Interscope Capitol branding led by John Janick. In late September, Universal Music Canada let go of about 6% to 7% of its workforce there, cutting more than a dozen roles across communications, marketing, A&R, label partnerships and administration.
A UMG spokesperson said of the staff changes: "Our consistent success has been built on our ability to anticipate industry changes, act early to better serve all our artists and songwriters, and capture opportunities in music's fastest-growing areas. Our industry-leading investment in artist development has always guided that work and will continue to do so. We're bringing in new skills and technology and connecting expertise across our teams to deliver greater global impact and greater efficiency. Where we have made the difficult decision to remove certain roles, we are deeply grateful for the contributions of the people leaving us."
Billboard also reported that UMG's share price is down nearly 33% so far this year, and that analysts believe the company is limiting spending to protect cash flow and profit margins following the close of its acquisition of Downtown Music Group. Barclays upgraded UMG's stock to overweight a week ago, based on its expectation that the company will cut costs in the near term and benefit from Spotify's SI remixing tool in the slightly longer term. Multiple sources also told Billboard that in recent weeks UMG had been tightening its purse strings: while there is no official policy across all of UMG, several labels and its publishing arm, Universal Music Publishing Group (UMPG), had been instructed to put off unnecessary spending for the rest of the year, and executive travel and expenses have been reduced.
Published by GSM · USA (original Chinese edition)
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