Spotify CFO Paul Vogel to depart after mass layoffs at the company

Spotify has announced the impending departure of its Chief Financial Officer, Paul Vogel, slated for the end of March next year. Vogel's departure marks the culmination of an eight-year tenure within the music-streaming giant.

“Spotify has embarked on an evolution over the last two years to bring our spending more in line with market expectations while also funding the significant growth opportunities we continue to identify. I’ve talked a lot with Paul about the need to balance these two objectives carefully. Over time, we’ve come to the conclusion that Spotify is entering a new phase and needs a CFO with a different mix of experiences,” shared Daniel Ek, Founder, Chief Executive Officer and Chairman of the Board of Directors.

“As a result, we’ve decided to part ways, but I am very appreciative of the steady hand Paul has provided in supporting the expansion of our business through a global pandemic and unprecedented economic uncertainty,” Ek added in an official statement.

The announcement comes amidst a turbulent period for the company, marked by recent layoffs. In a bid to restructure its workforce, Spotify revealed plans to reduce its employee count by approximately 1,500 individuals, which constitutes around 17% of its workforce. This decision follows previous staff reductions of 600 in January and an additional 200 in June.

Investor sentiment responded to these developments as the company's shares experienced a 2.3% decline in extended trading, settling at $191.35.

Addressing the forthcoming transition, Spotify announced on Thursday its initiation of an external search to identify Vogel's successor. Meanwhile, Ben Kung, the current vice president of financial planning and analysis, will temporarily shoulder additional responsibilities during this transitional phase.

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