Spotify’s Chief Financial Officer, Paul Vogel, is set to leave the company in March 2024, in the wake of substantial layoffs as Spotify reorients its focus toward prioritizing margin over growth.
Following a week of extensive workforce reductions, Spotify CEO Daniel Ek announced Vogel’s departure, citing a misalignment in experience for the company’s expansion and meeting market expectations. The search for Vogel’s successor is underway, while Ben Kung, Vice President of Financial Planning and Analysis, will assume additional responsibilities to support the financial leadership team’s realignment.
Daniel Ek expressed gratitude for Vogel’s contributions during a challenging period, stating, “Spotify is entering a new phase and needs a CFO with a different mix of experiences.” Vogel, who joined Spotify in 2020, played a crucial role in supporting the company’s business expansion amid a global pandemic and economic uncertainty.
As Spotify undergoes an evolution in its financial strategy, aligning spending with market expectations, the decision to part ways with Vogel reflects the company’s recognition of entering a new phase. The shift towards prioritizing margin over growth is a strategic move to balance objectives carefully.
Spotify CEO Ek assured the company’s strong position as it initiates the search for a new CFO, emphasizing pride in the company’s achievements and its commitment to delivering on outlined goals. Despite the recent layoffs, Ek reiterated Spotify’s dedication to cost management.
Earlier in the week, Spotify announced a workforce reduction of approximately 17%, a cost-cutting measure driven by slower economic growth. Despite achieving a notable operating profit of €32 million in Q3 2023, the company decided to streamline its workforce. Ek acknowledged the remarkable achievements in 2022 and 2023, attributing success to increased resources but emphasizing the need for efficiency as a priority moving forward.
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