Spotify CFO Paul Vogel to step down days after third round of layoffs announced for 2023 | Mint
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Business News/ Technology / News/  Spotify CFO Paul Vogel to step down days after third round of layoffs announced for 2023
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Spotify CFO Paul Vogel to step down days after third round of layoffs announced for 2023

In a statement announcing CFO Paul Vogel’s departure, CEO Daniel Ek said that the two had 'come to the conclusion that Spotify is entering a new phase and needs a CFO with a different mix of experiences.'

Spotify CFO will step down from his position next year (REUTERS)Premium
Spotify CFO will step down from his position next year (REUTERS)

Spotify's chief financial officer will step down next year, according to the music streaming service, just days after it announced its third round of layoffs for 2023. In a statement announcing CFO Paul Vogel’s departure, Spotify CEO Daniel Ek said that the two had 'come to the conclusion that Spotify is entering a new phase and needs a CFO with a different mix of experiences.'

Spotify said this week that it would be axing 17 per cent of its global workforce, citing the need to slash costs and become profitable. About 1,500 people will lose their jobs, a spokesperson confirmed to news agency Associated Press (AP).

Also Read: Spotify to Lay Off 17% of Staff, Its Third Round of Job Cuts This Year

Shortly after the layoffs were announced earlier this week, Spotify’s stock jumped about 8 per cent. On Tuesday, Vogel moved to sell more than $9.3 million worth of shares, according to securities filings. Two other senior executives also cashed in over $1.6 million in shares, according to a report by the Guardian.

Vogel will leave Spotify on March 31. Ben Kung, who currently serves as vice president of financial planning and analysis, “will take on expanded responsibilities" in the interim as Spotify searches for a successor externally, the company said in a blog post.

Stockholm-based Spotify posted a net loss of 462 million euros (about $500 million) for the nine months to September. The company announced in January that it was axing 6 per cent of total staff. In June, it cut staff by another 2 per cent, or about 200 workers, mainly in its podcast division.

Spotify posted a surprise profit in the third quarter and stronger-than-expected subscriber and user growth. The company raised the price of its subscription in the US and other major markets over the summer, a long-awaited increase the company said has not led to higher churn, according to a report by Wall Street Journal.

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Published: 08 Dec 2023, 11:01 PM IST
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