Spotify announced on Tuesday that founder and CEO Daniel Ek will step down in January to become the company’s executive chairman, as longtime leaders Gustav Soderstrom and Alex Norstrom take over as co-CEOs.
The leadership shift comes as Spotify doubles down on its expansion into podcasts and audiobooks, while facing ongoing scrutiny over how it balances profitability with growth. Shares dipped about 2.5% in premarket trading following the announcement, despite gaining 63% this year.
As executive chairman, Ek will adopt what the company described as a “European-style role,” focusing on capital allocation and long-term strategy. “I will be more involved than a typical U.S. chairman—think of it as moving from a player to a coach,” said Ek, who has been on Spotify’s board since 2008.
Spotify, founded in 2006 in Stockholm, now has nearly 700 million monthly users and a library of more than 100 million tracks, far ahead of Apple Music’s roughly 90 million subscribers. Still, competition from YouTube Music and Amazon Music remains strong, while profit margins are squeezed by rising royalty demands and the costs of expanding its ad-supported tier.
The company reported its first annual profit in 2024, after a mix of price hikes and cost-cutting. Analysts note that while Ek’s tenure has been remarkable, the transition could bring some short-term disruption.
Soderstrom, currently chief product and technology officer, will oversee global product and tech strategy, while Norstrom, chief business officer, will manage subscriptions, advertising, and content operations. Both executives have worked closely with Ek for over 15 years and will report to him in his new role.
The co-CEO model, adopted by global firms such as Oracle and Netflix, is seen as a way to navigate Spotify’s increasingly complex, diversified operations.
