Spotify Left by Big Boss After Mass Tech Layoffs – 19 hours ago

Jakarta, CNBC Indonesia – Paul Vogel will leave his position as Chief Financial Officer of Spotify next year. In line with this, Spotify Technology will look for a replacement.

Vogel will resign at the end of March 2024. His departure comes after eight years of service to the world music streaming giant, quoted from Reuters, Friday (8/12/2023).

While waiting for an external search for Vogel’s replacement, the Chief Financial Officer seat will be filled by Ben Kung. Currently, he serves as Spotify’s vice president of financial planning and analysis.

Vogel’s departure follows Spotify’s announcement that it is laying off around 1,500 employees. Reuters reported earlier this week, layoffs were carried out to reduce company costs.

The number of those affected by layoffs is 17% of the company’s total employees. The latest layoffs are the third after laying off 600 staff in January and cutting another 200 employees in June.

CEO Daniel Ek, in a letter to employees, said the company hired more people in 2020 to 2021. This was due to lower capital costs, and a large part of this was due to more resources.

Meanwhile, earlier this week, he said large layoffs would be felt. Due to the company’s latest earnings report and positive performance.

Even so, Daniel Ek still mentioned that his company needed effective points for his company now. “From some metrics, we are more productive but less efficient. We need both,” he said.

Spotify will also be subject to a fine of 130 million-145 million euros due to the layoffs. The components of the fourth quarter costs will be recorded in the first and second quarters of next year.

[Gambas:Video CNBC]

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