$170 million in cuts - how many jobs does that translate to?
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@en It is $170 million allocated for workforce reductions/savings, not $170 million allocated for cuts/severance. If you figure a fully loaded comp of $100,000 per employee that is 1700 employees. So either a lot more or a lot less depending on whether cuts are tilted towards workers or management layers.
You can play with numbers but here is what I would do. Per-Employee Layoff Cost Estimate (8 Weeks Severance). You'd want to adjust a lot of things here but this seems to be a major cut if they are allocating $170M for cuts, this is a major cut, i think will be in four digit range (probably 1K+ employees):
- Base salary: $120,000/year → $2,308/week
- 8 weeks of severance: 8 × $2,308 = $18,464
- Unused PTO payout: estimated $3,000 (varies)
- Benefits continuation (e.g. health insurance): estimated $2,000 (2 months employer share)
- Admin/legal/outplacement overhead: estimated $2,000
- Total estimated layoff cost per employee: $18,464 + $3,000 + $2,000 + $2,000 = $25,464
So, now 170,000,000 ÷ 25,464 ≈ 6,673 employees
That's way too much so we'll likely see much bigger severance packages or my 120K comp per employee is too much. Alternatively you can see much bigger packages, some companies are doing 26 or 52 week packages.
Anyhow, it'll be big no matter what
Warner Music Group will cut an unspecified number of jobs as part of a restructuring plan to reduce annual costs by $300 million, with $170 million coming from workforce reductions and the rest from administrative and real estate savings, while continuing to invest in artist development and catalog acquisitions.