The musician, who masterminded the Queen’s Diamond Jubilee concert, decided he had too many other commitments, including being a judge on X Factor.
All of the artists signed up to Future Records are to be re-housed within its parent company Universal.
Barlow told The Sun newspaper: “It’s been a very difficult decision but it came down to time.
“I’ve had a lot going on recently and I want to spend more time with my family.”
The 41-year-old was awarded an OBE earlier this year for services to the entertainment industry and to charity.
And in November, he was honoured for his contribution to the music industry with a Music Industry Trust award.