Music social network Crowdmix has laid off around 8% of its staff, Business Insider has learned, and it’s still yet to actually launch its product.
London-based Crowdmix is building an Instagram-style social network that’s all about music. Fans will be able sign up to see new music and posts from musicians. Users can also connect streaming sites so that they can play music through the app. It’s due to launch in May.
However, Business Insider has learned that Crowdmix recently cut a number of jobs in its marketing department. Crowdmix confirmed the layoffs, although it declined to provide an exact number of staff affected by what it called a “reorganisation.”
Crowdmix cofounder Gareth Ingham recently said that the company has over 160 staff in total, which suggests that around 12 staff members were affected by the cuts.
The company has also cut ties with a Los Angeles-based marketing agency which it was using in preparation for its launch, although Crowdmix says it has since started working with another agency. The company also recently hired a new CMO to lead the marketing team.
Crowdmix provided the following statement to Business Insider about the job cuts:
As a business that operates in a rapidly evolving marketplace we are constantly looking at ways to best respond to changing operational and market demands. As a result of this ongoing evaluation, we can confirm that we have gone through a re-organisation of our marketing department, which impacts less than 8% of our overall workforce. Since Crowdmix’s inception there has not been a single month where headcount hasn’t moved in both directions. We fully expect this pattern to continue for the foreseeable future which is in line with a fast growing early stage business.
We have invested in senior, more experienced talent which allows us to be more streamlined and effective in getting us to where we need to be, including Ted Mico as CMO who joined us this month from Mirriad. We have another three experienced exec leaders joining which we will be announcing in due course. We are excited about launching our app this summer.
It also provided this context for the ending of the relationship with the Los Angeles marketing agency:
We are significantly increasing our investment in our marketing, but focusing on highly skilled execs and consumer activation. As already mentioned we have hired a new CMO and Head of Communications in the last month with further announcements to come. With regards to ending a relationship with an LA based marketing agency we never comment on past, present or future commercial relationships unless mutually agreed. We continue too work with third parties to support us ahead of launch.
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