Music-focused social network Crowdmix has reportedly laid off 8% of its staff before it even launches.
The London-based company is due to launch its social network, which should allow music fans to see posts and new music from artists via an Instagram-like build, in May. A source told Business Insider that Crowdmix cut a number of jobs in its marketing department, although the company declined to quantify its confirmed "reorganisation".
Crowdmix co-founder Gareth Ingham previously stated that the company had more than 160 employees, which suggests that around a dozen staff members were affected.
The company provided a statement about the cuts, saying: "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."
The social network also cut ties with the Los Angeles-based marketing agency it was using ahead of launch, with a second statement adding: "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 to work with third parties to support us ahead of launch."
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