“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,” Spotify CEO Daniel Ek said in the statement.
“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 CFO with a different mix of experiences,” Ek continued.
Ben Kung, who is now Spotify’s vice president of financial planning and analysis, will assume expanded responsibilities during this period of transition, per the statement. It added that the company has embarked on an external search for Vogel’s replacement.
It has been a tumultuous week for the music-streaming giant. Spotify said in a blog post on Monday that it was laying about 17% of its workforce.
Ek said in the blog post that the decision to lay staff off was made because of a difficult economic environment.
“Economic growth has slowed dramatically and capital has become more expensive. Spotify is not an exception to these realities,” Ek wrote.
“Today, 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,” Ek said, adding that the company needed to become “relentlessly resourceful.”
Representatives for Spotify did not immediately respond to a request for comment from Business Insider sent outside regular business hours.
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