Spotify ousts its finance chief after cutting 1,500 jobs


James Warrington
Fri, 8 December 2023

Mr Vogel has served as chief financial officer since 2020 - Variety.com

Spotify has ousted its finance chief as founder Daniel Ek overhauls the streaming service in a bid to strip out costs.

The Swedish music company said chief financial officer Paul Vogel will step down at the end of March.

It marks the latest effort by Mr Ek to shake up Spotify, which has struggled to deliver consistent profits.

The company earlier this week announced it would slash 17pc of its workforce – around 1,500 jobs – in the third round of job cuts this year.

The overhaul comes as tech companies face pressure from investors to demonstrate profitability after years of growth funded by low interest rates.

In a statement late on Thursday announcing Mr Vogel’s departure, Mr 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 chief financial officer with a different mix of experiences.”

Spotify chief Daniel Ek says the company ‘needs a chief financial officer with a different mix of experiences’ - TORU YAMANAKA/AFP

The Spotify chief added that the company would select a “strong financial leader” as its next chief financial officer.

Spotify’s most recent job cuts raised eyebrows given the streaming service swung to a rare profit in the third quarter thanks to price rises and subscriber growth around the globe.

However, Mr Ek said Spotify needed to focus on efficiency, adding: “We still have too many people dedicated to supporting work and even doing work around the work rather than contributing to opportunities with real impact.”

He added: “Our cost structure for where we need to be is still too big”.

Spotify has been looking for new avenues of growth to help boost its profitability after a troubled $1bn (£800m) foray into podcasting.

The company spent heavily on shows by celebrities including Meghan Markle and Michelle and Barack Obama, but the gamble has so far failed to pay off.

In October, Spotify announced a move into audiobooks in a fresh effort to attract more subscribers.

Mr Vogel, who has served as finance chief since 2020, cashed in £7.2m of shares following the announcement of job cuts earlier this week but prior to news of his departure being made public.

He was one of several top executives to take advantage as Spotify’s shares spiked by as much as 8pc.

Ben Kung, Spotify’s vice president of financial planning and analysis, will take on an expanded role while the company looks for Mr Vogel’s successor.