Why Is Spotify Stock Trading Lower Friday?

Spotify Technology S.A. SPOT stock is trading lower Friday as the company's CFO Paul Vogel prepared to depart, effective March 31.

The company launched an external search for his replacement.

Ben Kung, Vice President of Financial Planning and Analysis, will assume expanded responsibilities to assist in the transition and realignment of the financial leadership team.

Daniel Ek, Spotify's Founder, CEO, and Chairman, stated that the company's evolution over the past two years has focused on aligning spending with market expectations while funding growth opportunities. 

Acknowledging the need for a CFO with different experiences for Spotify's new phase, Ek expressed gratitude for Vogel's contributions, particularly during challenging times like the global pandemic and economic uncertainties.

This week, the company disclosed significant organizational changes, including reducing the company's headcount by approximately 17%, approximately 1,500 people.  

It also discontinued two critically acclaimed podcasts, Heavyweight and Stolen, to scale back its in-house productions. 

Price action: SPOT shares traded lower by 1.57% at $192.75 premarket on the last check Friday.