Spotify Layoffs News Today

IBM's chief on generative AI said that Computer Science degrees may soon not be in demand in tech industries in favor of creative AI development.

Paul Vogel joined the company in 2016 as the head of investor relations and was promoted to the position of CFO in 2020.

Vogel's departure marks the culmination of an eight-year tenure within the music-streaming giant.

The company said on Thursday it has launched an external search for a successor, and in the interim Ben Kung, vice president of financial planning and analysis, would take on additional responsibilities.

Spotify is ‘entering a new phase’ and needs a CFO with a ‘different mix of experiences,’ co-founder and CEO Daniel Ek said in a statement.

CEO Daniel Ek says cuts will ensure company is “right-sized” for future challenges

In a message to the staff, Spotifys CEO Daniel Ek explained the job cuts as a measure to align the companys growth with capital costs. 

The company expects to incur about $25 million to $35 million associated with the restructuring in the last three months of 2023.

This decision attracted further scrutiny, especially given the backdrop of Spotify's recent rare quarterly net profit of 65 million euros in October and its impressive 26% surge in active users, totalling 574 million for the third quarter.

Freddie Carthy had joined Spotify last year after resigning from his job at Twitter in the aftermath of Elon Musk’s takeover of the social media company. He has now been laid off by the music streaming giant.