Universal Music Group Unveils Major Restructuring Initiative, Taps Republic and Interscope Geffen Heads for Bolstered Roles
Universal Music Group head Lucian Grainge, whoâs announced a major restructuring initiative. Photo Credit: UMG
A little over two weeks after confirming plans to make potentially far-reaching layoffs, Universal Music Group (UMG) has set in motion a major restructuring initiative.UMG CEO Lucian Grainge unveiled the comprehensive realignment via an internally circulated memo, which Variety obtained. As laid out in this nearly 700-word message, the shift represents one component of an effort to âbuild upon the leadership team for the recorded music business of the future.â
From there, the 63-year-old dedicated several paragraphs to touting the professional achievements of and ostensibly friendly in-house competition between Republicâs Monte Lipman and Interscope Geffenâs John Janick.
âThe competition within our own company in signing and developing artists is no accident,â penned London-born Grainge. âItâs by design. By creating a home for a variety of independent and competitive creative centers and the leaders that run them, we increase opportunities for growth and success.â
Moving past the remainder of Graingeâs description of this dynamic, the well-compensated UMG head proceeded to disclose the appointment of Janick and Lipman âto lead a broader part of our US recorded music business,â with the latter individual still based in New York, the former in Los Angeles.âUnder this new operating model,â continued Grainge, âMonte and John will support our label heads and help them build best-in-class teams⊠John will provide our labels including Blue Note, Capitol, Geffen, Interscope, Motown, Priority and Verve with unparalleled support, while Monte will do so for Def Jam, Island, Mercury and Republic.â
Beyond the overview and other general details â post-pivot, UMGâs labels will purportedly have âaccess to the talent and resources best able to support their rostersâ while also maintaining their A&R independence, âunique identities, and entrepreneurial spiritâ â Grainge indicated that âfurther announcementsâ are on the way.
âIn the coming weeks,â he wrote, âJohn and Monte will be making further announcements about structure, resources and next-generation partnerships. These and other developments will also power some of the other initiatives I outlined in my New Yearâs note, including super-fan and audience monetization, state-of-the-art D2C, e-commerce, branding and more.â
At the time of writing, Universal Music hadnât yet penned a formal release about its retooled layout, with the Big Three labelâs latter press entry relating instead to the much-publicized TikTok licensing showdown.
But a proper announcement will arrive sooner rather than later for UMG, with organizational specifics teed up for the remainder of February, as mentioned. Meanwhile, after these nuances enter the media spotlight, execs will presumably elaborate upon the matter when the company posts its 2023 financials on the 28th.
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