Utopia Music has develop into the newest firm to considerably lower the dimensions of its international workforce.
The acquisitive Switzerland-headquartered firm has confirmed to MBW that it has made a lot of layoffs.
Sources recommend these cuts have primarily are available in Utopia’s central workforce – together with some high-level executives – in addition to its tech-focused workforce.
Up to now, Utopia’s tech workers have been tasked with constructing the agency’s proprietary music monitoring platform, typically referenced because the ‘Utopia Open Platform’ (UOP).
MBW understands that Utopia’s international workforce numbers 1,200 individuals. That determine contains each contractors and round 800 workers.
A Utopia Music spokesperson advised MBW at present (November 24): “Like many progress firms in at present’s macroeconomic setting, Utopia is making adjustments to its inner construction to optimize the enterprise.
“We’ve grown quickly in two years, organically and thru 15 acquisitions. Now, we’re realizing price synergies throughout these acquisitions and specializing in sustainable progress. These adjustments allow us to raised serve the Music Trade and ship Honest 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 choice that was taken flippantly and we vastly worth the contribution of all our workers to Utopia’s journey to this point.”
“We’ve grown quickly in two years, organically and thru 15 acquisitions. Now, we’re realizing price synergies throughout these acquisitions and specializing in sustainable progress.”
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 slicing 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 workforce. There have been additionally stories final month of podcast workers being laid off at SPOT.
Immediately’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 impartial artists and file labels.
In December 2021 it acquired US-based music trade listing ROSTR and Austria-based music information analytics platform, ForTunes.
One among Utopia’s senior appointments this yr was Ulf Zick, who exited his function as Managing Director, Worldwide at Common Music Germany in April to hitch Utopia.
In August, MBW reported that Utopia was trying to boost €300 million in a Sequence C spherical that may worth its firm at €2.5 billion.Music Enterprise Worldwide