Spotify’s CFO is days away from multiple layoffs

Of all the releases happening at Spotify this week, there should be more. Chief Financial Officer Paul Vogel, who since 2020 managed the company’s balance sheet while expanding into podcasting and audiobooks, is leaving the company at the end of March 2024.

The CEO of Spotify, Daniel Ek, said that the decision was made because Vogel did not have the necessary experience to help the company expand and meet market expectations. The company has started the search for a replacement.

“Spotify has embarked on a transformation over the past two years to increase our revenue and market expectations while also capitalizing on the significant growth opportunities we continue to identify. Paulo and I have spoken frequently about the need to carefully balance these two goals. Over time, we have come to the conclusion that Spotify is entering a new phase and needs a CFO with a diverse mix of experiences. As a result, we have decided to part ways, but I really appreciate Paul’s steady hand in supporting the expansion of our business through a global pandemic and unprecedented economic uncertainty,” the said Ek in a information published on Thursday evening. Vogel did not comment.

After testing investors’ patience with acquisitions and investments, Spotify is focused on making a profit, for better or for worse. Many of his original broadcast operations have been shut down, including the cancellation this week of his two most popular shows, Heavy duty and stolen. About 1,500 people this week were separated from product, advertising, marketing, and content, about 17 percent of its workforce.

Vogel is a longtime Spotify employee, joining the company in 2016 as head of FP&A, treasury, and investor relations before being promoted to CFO in 2020. Prior to that, he was managing director at Barclay’s and a SVP at AllianceBernstein.

Before the news was published on Thursday, an SEC filing was released that revealed Vogel exercise 47,859 share options on Tuesday and sold those shares at one of the highest prices Spotify has seen in two years. The sale was $9.38 million. Vogel exercised options and sold stocks in March and September, but this sale was much better than the other two. It may be that the stock market is pre-set or driven by a stock price. Spotify did not return a request for comment on the sales.