Six-year-old music fintech firm Utopia Music is reportedly set to cut back its employees prices by 20 % after finishing a number of acquisitions throughout late 2021 and early 2022.
The expense-reduction plans of Utopia Music only recently got here to gentle in an internally circulated memo, per Music Week. For reference, the Swiss enterprise purchased Quincy Jones-backed Musimap in September of 2021, acquired artist-advance service Lyric Monetary in October of the identical 12 months, and scooped up trade listing ROSTR and data-analytics platform ForTunes in December.
Then, the buying spree continued within the new 12 months with the January buyout of UK-based distributor Correct Music Group, adopted by February offers for indie writer Sentric Music Group and Absolute Label Companies.
Again to the initially talked about inside memo, Utopia CEO (and former Fb exec) Markku Mäkeläinen is alleged to have touched upon a “want to understand synergies, take away overlaps to make the Royalty Platform division leaner, and enhance the speed of our price creation.”
As a part of this effort, Utopia is reportedly being organized round two major items, Utopia Music Tech (led by COO Roberto Neri and encompassing Absolute, Sentric, and Utopia Distribution Companies) and the aforesaid Utopia Royalty Platform (led by Mäkeläinen). The latter is reportedly anticipated to face employees cuts, and execs are stated to be reviewing the personnel inside the music-supervision and creator-services divisions as effectively.
Addressing the layoffs in an announcement, a Utopia Music spokesperson stated partially: “Like many development firms in right this moment’s macroeconomic atmosphere, Utopia is making adjustments to its inside construction to optimise the enterprise. We’ve grown quickly in two years, organically and thru 15 acquisitions. Now, we’re realising value synergies throughout these acquisitions and specializing in sustainable development.”
In the meantime, a number of of the affected professionals have already weighed in on the unlucky information on LinkedIn. A few of these people’ positions at Utopia embody industrial mission coordinator and enterprise analyst.
Utopia Music is hardly the one firm that’s made layoffs in latest months amid a rising deal with lowering bills and maximizing profitability.
Fb mother or father Meta laid off over 11,000 staff earlier in November, as an example, whereas Spotify initiated a brand new spherical of worker cutbacks, this time in recruiting. Moreover, Downtown’s CD Child and Soundrop introduced layoffs of their very own in October “as a result of present financial situations,” whereas Amazon’s Amp that very same month laid off about half its crew.
Lastly, Patreon parted with near one-fifth of its crew in September, on the heels of a BMI employees discount in August.