Spotify finance chief to depart following layoffs and share sale controversy
Spotify’s finance chief Paul Vogel is set to step down in March next year in the wake of mass layoffs at the streaming giant as it looks to a “new phase.”
In a statement on Friday, the chief executive of Spotify, Daniel Ek, said it is time for a different approach as Spotify enters a new era.
Ek said: “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.
“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,” he added.
The announcement followed the recent revelation Vogel had sold shares worth $9.4m (£7.5m) in the streaming giant after it declared it was slashing its workforce by 17 per cent, or 1,500 employees. The job cuts were announced as part of an efficiency drive to boost profits.
Spotify shares popped six per cent after the announcement. According to a filing with the US regulator, Vogel sold his stake on the same day.
Ben Kung, currently the vice president of financial planning and analysis at Spotify, will take on “extended responsibilities” in absence of a chief financial officer.
Spotify has kicked off an external search to fill Vogel’s shoes.