Spotify’s Chief Financial Officer, Paul Vogel, is set to step down in the coming year, as revealed by the music streaming service shortly after announcing its third round of layoffs for 2023. The departure was characterized by Spotify CEO Daniel Ek as a strategic move aligned with the recognition that the company is entering a new phase, necessitating a CFO with a different set of experiences.
This announcement followed Spotify’s recent decision to reduce its global workforce by 17%, equating to approximately 1,500 job cuts, as part of a cost-cutting initiative aimed at achieving profitability. The news of Vogel’s departure coincided with a notable 8% surge in Spotify’s stock.
Notably, Paul Vogel, alongside two other senior executives, seized the opportunity to sell significant amounts of company shares, with Vogel alone liquidating over $9.3 million worth on Tuesday, as reported in securities filings.
Vogel’s departure is scheduled for March 31, and during the interim period, Ben Kung, currently serving as Vice President of Financial Planning and Analysis, will assume expanded responsibilities. Spotify intends to conduct an external search for Vogel’s successor, as conveyed in a blog post by the company.
The Stockholm-based music streaming giant had reported a net loss of 462 million euros (approximately $500 million) for the nine months ending in September. This move follows previous staff reductions, including a 6% cut in January and an additional 2% reduction (about 200 workers) in June, primarily affecting its podcast division.
Despite these challenges, Spotify surprised the market with a profit in the third quarter, coupled with better-than-expected growth in subscribers and users. The company attributed part of its financial success to a price increase for its subscription service in the US and other major markets during the summer, noting that the long-awaited adjustment did not result in higher churn, according to a report by the Wall Street Journal.
