Equities

Spotify Appoints New CFO, Plans Price Hike for Key Markets

Spotify appoints Saab's Christian Luiga as CFO, signaling strategic shifts for profitability and expansion beyond music.

By Alex P. Chase

4/4, 08:56 EDT
Spotify Technology S.A.
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Key Takeaway

  • Spotify appoints Saab's Christian Luiga as new CFO, signaling a strategic move towards profitability with his entry in Q3.
  • Plans to increase subscription prices by $1-$2 in key markets, including the UK and Australia, aiming for 1 billion users by 2030.
  • Saab begins search for Luiga's successor, ensuring a smooth transition until his departure on October 3.

Leadership Transition at Spotify

Spotify Technology has announced the appointment of Christian Luiga as its new Chief Financial Officer (CFO), a strategic move that sees the music-streaming giant bringing in a seasoned executive from the defense and security sector. Luiga, who has been serving as CFO and Deputy CEO of Saab since 2020, is set to join Spotify in the third quarter. This announcement comes after Spotify disclosed in December that its current finance chief, Paul Vogel, would be departing at the end of March. In the interim, Ben Kung, Vice President of Financial Planning and Analysis at Spotify, will assume the CFO responsibilities.

Strategic Moves for Profitability

Spotify's decision to hire Luiga aligns with its broader strategy to enhance profitability. The company has recently undertaken several significant steps, including employee layoffs and adjustments to its pricing plans. Reports indicate that Spotify intends to increase the prices of its subscription plans by $1 to $2 a month in five key markets, including the UK and Australia, by the end of April, with a similar adjustment planned for the U.S. later in the year. This follows a price hike of approximately $1 last year across several countries, including the U.S. Additionally, Spotify is expanding its content offerings beyond music, venturing into podcasts and audiobooks, aiming to grow its user base to 1 billion by 2030 and lessen its dependence on the music industry.

Saab Initiates Successor Search

Following the announcement of Luiga's departure, Saab has commenced the recruitment process to find a suitable successor. Luiga, who has a notice period of six months with Saab, will remain with the defense group until October 3, ensuring a smooth transition. This move underscores the importance of strategic planning and continuity in corporate leadership roles.