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 plenty of layoffs.
Sources counsel these cuts have primarily are available 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 world workforce 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 development corporations 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 price synergies throughout these acquisitions and specializing in sustainable development. These modifications allow us to raised 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 significantly worth the contribution of all our workers to Utopia’s journey up to now.”
“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 development.”
Utopia Music spokesperson
Utopia is headed up by CEO Markku Mäkeläinen and was based by Mattias Hjelmstedt.
Hjelmstedt previously founded 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 reduction 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 reducing its new hiring earlier this yr, whereas more moderen on-line rumors have hinted at employees being let go from its expertise workforce. There have been additionally reports final month of podcast workers being laid off at SPOT.
Right now’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, success, and distribution agency Cinram Novum; UK-based bodily and digital music distributor Proper Music Group; and Absolute Label Services, one other UK-based distribution and providers supplier for unbiased 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 business listing ROSTR and Austria-based music knowledge analytics platform, ForTunes.
In October 2021, the agency purchased Nashville-based monetary providers firm, Lyric Financial and in September, Utopia purchased Quincy Jones-backed emotional knowledge enrichment firm Musimap.
Certainly one of Utopia’s senior appointments this yr was Ulf Zick, who exited his function as Managing Director, Worldwide at Universal Music Germany in April to affix Utopia.
Final week we learned, 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 Universal.
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
