Utopia Music has develop into the newest firm to considerably minimize the dimensions of its world workforce.
The acquisitive Switzerland-headquartered firm has confirmed to MBW that it has made numerous layoffs.
Sources recommend these cuts have primarily are available in Utopia’s central group – together with some high-level executives – in addition to its tech-focused workforce.
Thus far, Utopia’s tech staff 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 world group numbers 1,200 folks. That determine consists of each contractors and round 800 staff.
A Utopia Music spokesperson instructed MBW in the present day (November 24): “Like many progress corporations in in the present day’s macroeconomic surroundings, 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 progress. These modifications allow us to higher serve the Music Trade 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 evenly and we tremendously worth the contribution of all our staff to Utopia’s journey up to now.”
“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 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 facet 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 world workforce by roughly 20%.
Spotify was additionally reportedly decreasing its new hiring earlier this yr, whereas more moderen on-line rumors have hinted at employees being let go from its expertise group. There have been additionally stories final month of podcast staff 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 Providers, one other UK-based distribution and providers supplier for impartial artists and report labels.
In December 2021 it acquired US-based music business listing ROSTR and Austria-based music knowledge analytics platform, ForTunes.
One among Utopia’s senior appointments this yr was Ulf Zick, who exited his position as Managing Director, Worldwide at Common Music Germany in April to hitch Utopia.
In August, MBW reported that Utopia was making an attempt to lift €300 million in a Collection C spherical that may worth its firm at €2.5 billion.Music Enterprise Worldwide