Earlier this year, Spotify announced trimming its workforce by 17 percent. As a result, 1,500 employees were impacted and many of them also shared their stories on LinkedIn. And now, the company has announced that its Chief Financial Officer (CFO) Paul Vogel will also be stepping down in March 2024.
In a press release, Spotify said that they are entering a new phase where they need a CFO with a “different mix of experiences.”
Spotify CFO to step down soon
In the press release, Spotify said that its CFO, Paul Vogel, will step down from his position and leave the company on March 31, 2024. The company is looking for another person to fill in his shoes. Until that happens, Ben Kung, Vice President of Financial Planning and Analysis, will be taking on additional responsibility.
Spotify CEO Daniel Ek, talking about the development, said that since the last two years, Spotify has been focusing on bringing its spending “more in line with market expectations while also funding the significant growth opportunities they continue to identify.”
He added that he has talked with Vogel about the “need to balance these two objectives carefully.” The CEO added that they have concluded that Spotify is “entering a new phase and needs a CFO with a different mix of experiences.”
He added that hence, they (Vogel and Spotify) have decided to “part ways” and that he is “appreciative of the steady hand Paul has provided in supporting the expansion of their business through a global pandemic and unprecedented economic uncertainty.”
About Spotify layoffs
Earlier this week, Ek had announced the layoffs in a blog post. He mentioned how, despite Spotify’s overall success, there is a challenging economic climate globally. He then talked about the rising costs associated with growing the business. In response, he said that the company is re-evaluating its spending and workforce size.
“To align Spotify with our future goals and ensure we are right-sized for the challenges ahead, I have made the difficult decision to reduce our total headcount by approximately 17 percent across the company. I recognize this will impact a number of individuals who have made valuable contributions. To be blunt, many smart, talented, and hard-working people will be departing us,” Ek said in the post.
He then said that Spotify is committed to supporting those affected by the layoffs and will be providing financial assistance based on their tenure. He added that the company will be compensating the laid-off employees for unused holidays and will be offering continued healthcare coverage, assisting with immigration issues related to employment, and providing access to job placement services.
Meanwhile, in June this year, Spotify had laid off 200 employees from its podcast unit, constituting about 2 percent of its workforce. This move was aimed at streamlining operations, focusing on the core music streaming business, and reallocating resources to explore new opportunities in the podcasting space.
