San Francisco: Music streaming platform Spotify’s chief financial officer (CFO) Paul Vogel is leaving the company after massive layoffs this week and according to Spotify CEO Daniel Ek, Vogel didn’t have the experience needed to help the company expand and meet market expectations.
Vogel will depart at the end of March 2024. The development came as approximately 1,500 people were laid off from product, advertising, marketing, and content teams this week, amounting to 17 per cent of Spotify’s staff.
“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,” Ek said in a statement late on Thursday.
“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,” the Spotify CEO added.
The company has launched an external search for his successor. In the interim, Ben Kung, Vice President of Financial Planning and Analysis, will take on expanded responsibilities to support the company’s realignment of its financial leadership team.
Spotify on Monday announced to eliminate about 17 per cent of its workforce across the company as it looks to become “both productive and efficient”.
Ek said in a note to staff that right-sizing the workforce is critical for the company to face the “challenges ahead”. This is Spotify’s third round of layoffs this year. In June, the company sacked 200 employees, or 2 per cent of its workforce, from its podcast division and in January, it slashed 6 per cent of its workforce, or about 600 staffers, globally.
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