Spotify appoints Christian Luiga as new CFO

Luiga is set to join the streaming giant in the third quarter of 2024, with the company’s vice president of financial planning and analysis Ben Kung taking on the role of interim CFO in the meantime. 

Based in Sweden, Luiga replaces Paul Vogel, whose exit from the post was announced in December. He will oversee a range of critical functions at Spotify, including financial planning and analysis, audit and risk management, investor relations, accounting, corporate development, tax and treasury. 

Luiga brings a wealth of experience to the role, having previously served as deputy CEO and CFO at European defence and aerospace company Saab AB. Prior to this, he held pivotal positions at leading European telco Telia, including CFO, acting CEO and president.

“I have really enjoyed my time at Saab and it is a fantastic company with great opportunities,” Luiga said. “I will miss all the colleagues that I have got to know during these years and I look forward to following the continued success of the company from the sideline.” 

Luiga’s appointment follows Spotify CEO Danile Ek’s emphasis on efficiency and profitability, outlined during the company’s Q3 earnings call in October. “A new part of the Spotify modus operandi is our focus on efficiencies,” he said. “Paul [Vogel] and myself and the rest of the management team [are] constantly looking at how we can make improvements, and we’re constantly finding new ways to bring more efficiencies out of the business.”

This strategic shift prompted substantial restructuring, highlighted by 500 layoffs announced in January 2023, and an additional 200 job cuts in June, particularly within the podcast division. 

According to its Q1 2024 forecast, Spotify anticipates reaching 618 million monthly active users, generating an operating income of $194 million, and achieving total revenue of $3.8 billion. 

Earlier this week, it was reported that Spotify was planning price increases in key markets like the UK, Australia, and Pakistan, followed by adjustments in the US later in the year. The hikes, ranging from $1 to $2 per month for different plans, aim to boost profitability. Additionally, Spotify may introduce a “Supremium” tier offering lossless audio and AI-generated playlists. The platform is also revising its royalty payout mechanisms to support artists and combat artificial streaming. Plans include launching a “Basic” tier excluding audiobooks, alongside existing Premium offerings.