In a significant development, Spotify's chief financial officer (CFO), Paul Vogel, will leave the music-streaming giant on March 31, 2024. This news comes just three days after the company announced plans to lay off 17% of its workforce, marking the third round of job cuts this year.

Vogel, who started his journey at Spotify in 2016 as the head of investor relations before taking on the CFO position in 2020, will be replaced as the company initiates the search for a new CFO. Ben Kung, vice president of financial planning and analysis, will temporarily assume added responsibilities in the meantime.

According to CEO Daniel Ek, this move is a result of Spotify's ongoing efforts to bring its spending in line with market expectations while continuing to fund growth opportunities. "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 stated.

Vogel's impending departure concludes a challenging week for the streaming giant, which recently revealed its workforce reduction plans. The layoffs, affecting approximately 1,500 jobs, are expected to provide terminated employees with about five months of severance pay, accumulated paid time off, and health insurance during the severance period.

The job cuts come as Spotify grapples with the financial impact of rising interest rates. With the Federal Reserve implementing an aggressive tightening regime, the benchmark federal funds rate has reached a 22-year high of between 5.25% and 5.5%, affecting the company's financials and those of consumers.

The recent layoffs are not the first cost-cutting measures undertaken by Spotify. In June, the company laid off 2% of its staff, or about 200 roles, following disappointing performance of Prince Harry and Meghan Markle's podcast. The company had reportedly paid over $18 million for the Duchess of Sussex's podcast, contributing to its decision to reduce staff.

Spotify's financial struggles have prompted various actions to increase profitability. Earlier this year, the company implemented a $1 increase in its US plans, including the premium single tier, duo, family, and student plans. In addition to this, Spotify has expanded into the audio book market, with rumors of a new subscription tier called "Supremium" priced at $20 per month. The tier is expected to offer personalized sound capsules, high fidelity audio, and access to audio books.

Despite the challenges, Spotify's shares on the New York Stock Exchange were up over 1% in premarket trading, reaching $195.82. CEO Daniel Ek has ambitious goals for the company, aiming to achieve profitability by 2024 and generate $100 billion in revenue by 2030, as announced during Spotify's investor day last year.

As the search for a new CFO begins, it remains to be seen how Spotify will navigate these changes and further align its financial strategies with its growth objectives in the competitive music-streaming industry.