Spotify is perhaps the biggest music-streaming platform on the planet right now. However, what was happening behind the doors seemed to be alarming
Spotify Chief Financial Officer Paul Vogel is resigning from his post and the company is looking for its replacement already.
Spotify CFO Paul Vogel Resigns
According to a Variety report, Paul Vogel will be leaving the company in 2024 and the team has already launched a manhunt for its replacement. Vogel will be on Spotify until Mar. 31, 2024.
In effect, Spotify's Vice President for Financial Planning and Analysis Ben Kung will be taking on "expanded responsibilities" along with supporting the company's "realignment of its financial leadership team."
"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," Spotify Chief Executive Office Daniel Ek said. "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."
Following this "evolution" Ek revealed that Spotify and Vogel have "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."
The surprising move came on the heels of Spotify's recent massive layoffs.
Spotfiy Layoffs 2024
Billboard reported that Spotify slashed 17% of their global workforce earlier this month, which translates to roughly 1,500 jobs from the company.
This recent retrenchment was the third round this year. In January 2023, Spotify sacked 6% of its global workforce, affecting more than 600 people on their podcast department. In June 2023, around 200 people, or 2% were also fired.
"To understand this decision, I think it is important to assess Spotify with a clear, objective lens," Ek added. "In 2020 and 2021, we took advantage of the opportunity presented by lower-cost capital and invested significantly in team expansion, content enhancement, marketing, and new verticals. These investments generally worked, contributing to Spotify's increased output and the platform's robust growth this past year. However, we now find ourselves in a very different environment. And despite our efforts to reduce costs this past year, our cost structure for where we need to be is still too big."
READ MORE: Spotify Axes More Employees Globally As 2023 Wraps Up: Here's Why
