Utopia Music has become the latest company to make significant cuts to the size of its global workforce.
The acquiring Switzerland-headquartered company has confirmed to MBW that it has made a number of layoffs.
Sources suggest that these cuts have mainly come to Utopia’s central team — which includes some high-level executives — as well as its tech-focused workforce.
To date, Utopia’s technical staff has been tasked with building the firm’s proprietary music monitoring platformSometimes referred to as ‘Utopia Open Platform’ (UOP).
MBW understands that Utopia has a global team of 1,200 people. That figure includes both contractors and about 800 employees.
A spokesperson for Utopia Music told MBW today (24 November): “Like many companies growing in today’s macroeconomic environment, Utopia is making changes to its internal structure to adapt to its business.
“We have grown rapidly in two years, both organically and through 15 acquisitions. Now, we are realizing the cost synergies in these acquisitions and are focused on continued growth. These changes enable us to better serve the music industry and provide fair pay for each play.
“Unfortunately, this means saying goodbye to some of our associates as part of this process. This is not a decision that was taken lightly and we greatly value the contributions of all our employees in Utopia’s journey so far. Let’s give
“We have grown rapidly in two years, both organically and through 15 acquisitions. Now, we are realizing the cost synergies in these acquisitions and are focused on continued growth.
Utopia Music Spokesperson
Utopia is led by CEO Markku Mäkeläinen and was founded by Mattias Hjelmstedt.
Hjelmstedt founded the first media streaming startup vodler And to imagine.
The news of job losses at Utopia comes after a wave of layoffs in the tech-leaning side of the global music business.
Just last week, MENA-focused Spotify rival Angami revealed it was cutting 22% of its workforce. This was followed in August by SoundCloud reporting a reduction in its global workforce by around 20%.
US-based archive society BMI (Broadcast Music, Inc.) also confirmed in August that it was laying off “just under 10%” of its total workforce.
Spotify was also reportedly Shortage its new recruits earlier this year, while recent rumors online hinted Employees are being let go from their talent team. were also reports SPOT has been laying off podcast employees over the past month.
Today’s news follows a recruiting spree at Utopia over the past 14 months – which has been accompanied by an aggressive acquisition strategy.
That acquisition spree included: UK warehouse, fulfillment, and distribution firm Cinerum Novum; UK-based physical and digital music distributor Proper Music Group; and Absolute Label Services, another UK-based distribution and service provider for independent artists and record labels.
Earlier this year Utopia also acquired Centric Music Group, a Liverpool-based music publisher and publication administration company.
In December 2021 it acquired US-based music industry directory ROSTR and Austria-based music data analytics platform, ForTunes.
In October 2021, the firm bought Lyric Financial, a Nashville-based financial services company, and in September, Utopia bought Musimap, a Quincy Jones-backed sentimental data augmentation company.
One of Utopia’s senior recruits this year was Ulf Zick, who stepped down from his role as Managing Director, International at Universal Music Germany in April to join Utopia.
Last week we learned that just six months after joining Utopia as Chief Marketing Officer, Zick announced he was leaving the Swiss company for a job at Universal.
In August, MBW reported that Utopia was seeking to raise €300 million in a Series C round that would value its company at €2.5 billion.worldwide music business