Spotify’s Chief Financial Officer (CFO), Paul Vogel, cashed out 47,859 shares earning him $9.377 million, just 24 hours after the company announced that 17 percent of its workforce would be laid off in a “hard but crucial step.”

The streaming service’s CEO, Daniel Ek, has since released a statement revealing that Vogel is due to depart from the company at the end of Q1 in 2024 (31 March) as part of a new phase for the streaming giant.

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The findings regarding the shares were uncovered in an SEC filing, as spotted by Music Business Worldwide. The outlet found that the shares were cashed in on Tuesday this week (5 December), with the layoffs announced in a statement from Spotify’s newsroom the day prior on 4 December 2023.

Vogel’s annual base salary at Spotify was $600,000 in 2022, according to SEC documents, but he also pulled in option awards worth $6.187 million in the year.

In a press release from the platform shared online (7 December), Ek explains why Vogel’s time at Spotify is due to come to an end: “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 CFO with a different mix of experiences,” says Ek.

“As a result, we’ve decided to part ways, but I am very appreciative of the steady hand Paul has provided in supporting the expansion of our business through a global pandemic and unprecedented economic uncertainty.

“As we initiate the search for a new leader, we do so from a position of strength. I am enormously proud of the strides we’ve made as a company. We are on track to deliver against the goals we outlined at our Investor Day and our recent actions will help us accelerate these efforts. We look forward to tapping a strong financial leader as our next CFO and I will share more details soon.”

Employees affected by the lay offs at Spotify will receive five months of redundancy pay. The company also promises to cover their healthcare over the five month span.

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