Spotify reports that its CFO is leaving, only days after pocketing $9.3 million in stock

Following the announcement that 1,500 jobs would be eliminated, Paul Vogel moved to sell stock as shares shot up.

Days after profiting from $9.3 million (£7.4 million) in shares following the music streaming service’s announcement that it would be laying off nearly a fifth of its global workforce, Spotify has announced that its chief financial officer, Paul Vogel, is leaving.

Vogel will quit Spotify in March after eight years of service, cashing in on $9.3 million in shares as the company’s stock surged following the news that 1,500 jobs would be eliminated.

Three years ago, he was promoted to chief financial officer at Spotify. Since then, the company has seen significant growth in subscribers, going from 124 million to 226 million, and in quarterly revenue, from €1.86 billion (£1.6 billion) to €3.36 billion.

Though it has solidified its place as the largest streaming service globally, Spotify has struggled to maintain profitability and has a high cost structure due to its payment to record companies for music licenses.

Daniel Ek, co-founder and chief executive of Spotify, said, “Over time, we’ve come to the conclusion that Spotify is entering a new phase and needs a new chief financial officer with a different mix of experiences.” “As a consequence, we have decided to part ways, but I am really grateful for Paul’s steady hand in helping us grow our business despite the unprecedented economic uncertainty and worldwide pandemic.”

After Barry McCarthy left to take a position as chief executive of Peloton last year, Vogel was elevated to chief financial officer in 2020.

Vice-president of financial planning and analysis at Spotify Ben Kung will be responsible for more work in order to facilitate “the company’s realignment of its financial leadership team.”

Ek stated to investors last year that Spotify wanted to reach an operating profit of 20% and a gross margin of 40%.

According to Ek, “We are on track to deliver against the goals we outlined.” “We are excited to appoint a capable financial leader to serve as our next CFO.”