Utopia Music has grow to be the newest firm to considerably reduce the dimensions of its international workforce.
The acquisitive Switzerland-headquartered firm has confirmed to MBW that it has made quite a few layoffs.
Sources recommend these cuts have primarily are available in Utopia’s central crew – together with some high-level executives – in addition to its tech-focused workforce.
So far, Utopia’s tech staff have been tasked with constructing the agency’s proprietary music monitoring platform, generally referenced because the ‘Utopia Open Platform’ (UOP).
MBW understands that Utopia’s international crew numbers 1,200 individuals. That determine contains each contractors and round 800 staff.
A Utopia Music spokesperson instructed MBW right this moment (November 24): “Like many development corporations in right this moment’s macroeconomic setting, Utopia is making modifications to its inside construction to optimize the enterprise.
“We’ve grown quickly in two years, organically and thru 15 acquisitions. Now, we’re realizing value synergies throughout these acquisitions and specializing in sustainable development. These modifications allow us to higher serve the Music Business and ship Truthful Pay for Each Play.
“Sadly, meaning saying goodbye to a few of our colleagues as a part of this course of. This isn’t a call that was taken flippantly and we significantly worth the contribution of all our staff to Utopia’s journey to this point.”
“We’ve grown quickly in two years, organically and thru 15 acquisitions. Now, we’re realizing value synergies throughout these acquisitions and specializing in sustainable development.”
Utopia Music spokesperson
Utopia is headed up by CEO Markku Mäkeläinen and was based by Mattias Hjelmstedt.
Hjelmstedt beforehand based media streaming startups Voddler and Magine.
Information of job losses at Utopia follows a wave of layoffs sweeping throughout the tech-leaning aspect of the worldwide music enterprise.
Simply final week, MENA-focused Spotify rival Anghami revealed that it was reducing 22% of its headcount. That adopted the information in August of SoundCloud‘s discount to its international workforce by roughly 20%.
Spotify was additionally reportedly lowering its new hiring earlier this yr, whereas newer on-line rumors have hinted at employees being let go from its expertise crew. There have been additionally experiences final month of podcast staff being laid off at SPOT.
At the moment’s information follows a hiring spree at Utopia over the previous 14 months – which has taken place alongside an aggressive acquisition technique.
That acquisition spree has included: UK warehouse, achievement, and distribution agency Cinram Novum; UK-based bodily and digital music distributor Correct Music Group; and Absolute Label Companies, one other UK-based distribution and providers supplier for unbiased artists and file labels.
In December 2021 it acquired US-based music business listing ROSTR and Austria-based music information analytics platform, ForTunes.
One in all Utopia’s senior appointments this yr was Ulf Zick, who exited his position as Managing Director, Worldwide at Common Music Germany in April to affix Utopia.
In August, MBW reported that Utopia was making an attempt to boost €300 million in a Collection C spherical that may worth its firm at €2.5 billion.Music Enterprise Worldwide