Utopia Music has change into the newest firm to considerably reduce the scale of its world workforce.
The acquisitive Switzerland-headquartered firm has confirmed to MBW that it has made quite a lot of 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.
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 world group numbers 1,200 folks. That determine consists of each contractors and round 800 staff.
A Utopia Music spokesperson informed MBW at the moment (November 24): “Like many progress corporations in at the moment’s macroeconomic atmosphere, Utopia is making adjustments to its inside 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 higher serve the Music Business and ship Honest Pay for Each Play.
“Sadly, which means saying goodbye to a few of our colleagues as a part of this course of. This isn’t a call that was taken calmly and we drastically worth the contribution of all our staff to Utopia’s journey to date.”
“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 facet of the worldwide music enterprise.
Simply final week, MENA-focused Spotify rival Anghami revealed that it was chopping 22% of its headcount. That adopted the information in August of SoundCloud‘s discount to its world workforce by roughly 20%.
US-based assortment society BMI (Broadcast Music, Inc) additionally confirmed in August that it was shedding “just below 10%” of its complete workforce.
Spotify was additionally reportedly decreasing its new hiring earlier this yr, whereas newer on-line rumors have hinted at employees being let go from its expertise group. 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 companies supplier for impartial artists and document labels.
Earlier this yr Utopia additionally acquired Liverpool-based music writer and publishing administration firm Sentric Music Group.
In December 2021 it acquired US-based music trade listing ROSTR and Austria-based music information analytics platform, ForTunes.
In October 2021, the agency purchased Nashville-based monetary companies firm, Lyric Monetary and in September, Utopia purchased Quincy Jones-backed emotional information enrichment firm Musimap.
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.
Final week we discovered, that simply six months after becoming a member of Utopia as Chief Advertising Officer, Zick’s introduced he’s leaving the Swiss firm for a job again at Common.
In August, MBW reported that Utopia was making an attempt to boost €300 million in a Collection C spherical that will worth its firm at €2.5 billion.Music Enterprise Worldwide