Live Nation Entertainment Inc. (NYSE:LYV) shares moved lower Thursday after its Ticketmaster unit cut 350 employees, representing 8% of its global staff, across 25 countries.
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The layoffs primarily hit engineering, product and design roles, with contractors also reduced, according to Pollstar.
Ticketmaster Global President Saumil Mehta said the cuts were aimed at "stronger prioritization," including flattening layers, consolidating ownership and putting more energy behind specific initiatives.
The timing is notable because the reductions came just after Live Nation reported first-quarter results showing continued demand for concerts and ticketing.
Live Nation posted Q1 revenue of $3.79 billion, ahead of consensus estimates of $3.57 billion, for a revenue beat of $221.8 million, according to Benzinga Pro data.
Still, the company reported a Q1 operating loss of $370.5 million and diluted EPS of negative $1.85.
Live Nation said its results were impacted by a $450 million legal accrual related to government investigations and litigation.
Ticketmaster itself remained a bright spot in the quarter. Live Nation said Ticketing revenue rose 10% year-over-year to $765 million, while Ticketmaster fee-bearing tickets transacted through April rose 9% to 138 million and gross transaction value increased 15% to $17 billion.
Management framed the layoffs as a forward-looking move rather than a reaction to weak results. Mehta told Pollstar the strong performance reflected the past, while the cuts were designed to position Ticketmaster for the next 12 to 24 months.
LYV Price Action: Live Nation Entertainment shares were down 3.03% at $162.74 at the time of publication Thursday, according to Benzinga Pro.
Over the past month, LYV has gained about 5.1% versus a 11.3% rise in the S&P 500 and is up roughly 18% year-to-date compared to the index’s 6.6% gain.
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