Spotify just laid off about 1,500 employees, and now its chief financial officer, Paul Vogel, is also leaving the company. Vogel has been CFO since 2020 and these are the biggest layoffs Spotify has ever had. Spotify’s CEO, Daniel Ek, said Vogel is leaving because he doesn’t have enough experience to help the company grow and meet the expectations of investors. Spotify is now looking for a new finance leader.
Spotify’s CFO Paul Vogel is leaving the company
Paul Vogel, Spotify‘s Chief Financial Officer, is set to depart the company on March 31, 2024, marking the end of an 8-year tenure. This announcement follows Spotify’s recent workforce reduction, which cut 17% of positions (roughly 1,500 employees) on December 4th.
CEO Daniel Ek acknowledged his frequent discussions with CFO Paul Vogel about the delicate balance between these objectives. Ultimately, they concluded that Spotify’s new phase demands a CFO with a distinct set of experiences. While expressing sincere gratitude for Vogel’s leadership and stability during challenging times like a global pandemic and economic instability, Ek announced their mutual decision to part ways. Notably, Vogel did not issue a public statement.
Spotify’s current VP of financial planning and analysis, Ben Kung, will assume expanded responsibilities. He will support the company’s financial leadership realignment during this interim period. The search for a new CFO is currently underway, seeking a candidate with the specific experience and expertise required to guide Spotify’s next chapter.
Paul Vogel recently made millions of dollars selling stock options
The day after Spotify announced layoffs (December 4th), the company’s stock price went up 7.5%. On the next day (December 5th), Spotify’s CFO, Vogel, sold some of his stock options for millions of dollars. He sold 47,859 options for a total of $9.38 million, according to SEC filings (via Variety). Spotify has a lot of users, both free and paid. As of the most recent quarter, it reported having 574 million users, including 226 million paying subscribers across 184 countries. The company has continued its ritual to release Spotify Wrapped for 2023.