Diversity ‘Is a Profitable Business Strategy, Not Charity’: Black Music Action Coalition Weighs in on Recent Industry Layoffs

Universal Music Group’s (UMG) layoffs last week (Oct. 14) have sparked discussions across the music community and social media, with some decrying the severely reduced C-suite ranks involving people of color and women. Questions are also being raised as to what the future holds for women and people of color aspiring to build careers in the music industry.

In a recently released statement, the Black Music Action Coalition (BMAC) weighed in with its perspective on the state of the music business since #TheShowMustBePaused took the industry to task over racial/gender parity and equity in 2020. Acknowledging the need for companies to evolve as markets and strategies evolve, the statement opens by underscoring that “restructuring should not erase decades of profitable progress or come at the cost of dignity and institutional knowledge.”

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The BMAC’s statement continues, “We are troubled by reports that entire divisions have been eliminated without meaningful conversations with the leaders who built them. Some executives have received celebrated, carefully managed departures, while others have not been afforded the same respect. Dignity and acknowledgement should be extended to everyone. We congratulate those promoted to new leadership roles and wish them success. Celebrating their achievements can go hand-in-hand with an honest conversation about those displaced.

“The slate of recent changes also raises questions about who will lead next. Black executives, women and other underrepresented professionals still face barriers to opportunities for sustainable leadership roles at major music companies. Are restructuring efforts opening pathways or narrowing them? The industry has already shown that diverse executives successfully run billion-dollar businesses, drive innovation, expand global markets and deliver strong returns. Diverse leadership has helped build successful companies, artists and valuable intellectual property. A diverse workplace is a profitable business strategy, not charity.”

Among the high-profile executives laid off across the UMG label division were Def Jam’s chairman/CEO Tunji Balogun, Interscope Geffen A&M’s president and head of urban A&R Nicole Wyskoarko (who was presented with BMAC’s inaugural Sylvia Rhone Visionary Award on Sept. 24) and co-president and head of pop/rock A&R Sam Riback. Layoffs at UMG division MCA Nashville included COO Rob Femia and senior vp of promotion and regional marketing Miranda McDonald. Republic Records CEO Jim Roppo left the UMG team to become vice chairman at Warner Records.

BMAC’s statement also included comments from three principals of the organization who said, in part:

Co-founder and president/CEO Willie “Prophet” Stiggers: “The music industry is at a defining moment. The decisions being made today will determine who has access, who holds power and who gets to shape the future of this business. Maybe it’s time we ask a harder question. The tens of millions of dollars pledged to advance racial equity in the music industry were supposed to create lasting change. What if more of that investment had gone toward protecting career pathways, developing future leaders, and building real economic security for the Black and Brown professionals who helped make these companies successful?”

Co-founder/executive board member Shawn Holiday: “As a former major label executive, it’s disheartening to see fewer Black executives in leadership positions and Black music divisions disappearing from the very companies that have benefited so greatly from our culture … As this industry evolves, we must continue creating space for Black leadership and protecting the infrastructure that has helped shape modern music. Somewhere out there is the next Berry Gordy, Sylvia Rhone or Andre Harrell. We have to make sure they get their shot.”

Executive board member Naima Cochrane: “When Sylvia Rhone … stepped down last year, she was the only remaining Black woman heading a major almost 35 years after shattering that ceiling. Now, with Tunji Balogun’s departure, we’re facing the very real possibility of an industry where Black executives are completely absent from the helm of major record labels … If we allow nearly four decades of progress to quietly disappear under the guise of restructuring, my fear is that those positions will be almost impossible to regain. The sharp regression we’ve witnessed with Black music executives and departments …, especially following a period of vocal commitment to Black equity and representation from major music groups, should concern everyone … Black music continues to drive the culture, influence and revenue of this business. Representation in the buildings should reflect that.”