Spotify’s Chief Financial Officer, Paul Vogel, has announced he will be leaving the streaming platform in March next year, days after the company announced it was laying off almost a fifth of its workforce to cut costs.

Vogel has been with the company since June 2016, joining from Barclays as Head of FP&A, Treasury and Investor Relations before being promoted to CFO in 2020.

The exit comes as the company announced earlier this week it will be cutting 17% off its workforce.

In a letter, Founder and CEO Daniel Ek said: “Economic growth has slowed dramatically and capital has become more expensive. Spotify is not an exception to these realities.

“To be blunt, many smart, talented and hard-working people will be departing us.”

The company has launched an external search for Vogel’s successor, it revealed.

Ek said: “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.”

He added: “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.”