Utopia Music has develop into the most recent firm to considerably minimize the dimensions of its international workforce.
The acquisitive Switzerland-headquartered firm has confirmed to MBW that it has made plenty of layoffs.
Sources recommend these cuts have primarily are available Utopia’s central crew – together with some high-level executives – in addition to its tech-focused workforce.
To this point, 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 crew numbers 1,200 individuals. That determine consists of each contractors and round 800 workers.
A Utopia Music spokesperson advised MBW immediately (November 24): “Like many progress firms in immediately’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 progress. These modifications allow us to raised serve the Music Business 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 call that was taken frivolously and we drastically worth the contribution of all our workers to Utopia’s journey to date.”
“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 international workforce by roughly 20%.
Spotify was additionally reportedly lowering its new hiring earlier this 12 months, whereas newer on-line rumors have hinted at workers being let go from its expertise crew. There have been additionally experiences 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 Providers, one other UK-based distribution and companies 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 12 months 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 lift €300 million in a Collection C spherical that will worth its firm at €2.5 billion.Music Enterprise Worldwide