Spotify CEO Daniel Ek steps down after 20 years, co-CEOs to lead from 2026

After nearly two decades at the helm, Daniel Ek is stepping down as Spotify’s chief executive. The company announced Tuesday that Ek will shift into the role of executive chairman starting January 1, 2026, handing day-to-day control to longtime lieutenants Gustav Söderström and Alex Norström, who will take over as co-CEOs.

The market didn’t greet the news warmly—Spotify’s stock slipped 6% after the announcement. Ek, who co-founded the streaming platform in 2006 and helped turn it into a $140 billion giant, said the leadership shuffle reflects how the company already operates.

“Over the last few years, I’ve turned over a large part of the day-to-day management and strategic direction of Spotify to Alex and Gustav–who have shaped the company from our earliest days and are now more than ready to guide our next phase,” Ek said in a release. “This change simply matches titles to how we already operate.”

Ek will focus on shaping Spotify’s long-term vision and advising its leadership team. In a post on X, he added: “It’s been an honor of a lifetime for me to be able to lead Spotify for close to 20 years.” Forbes pegs his net worth at $9.8 billion.

Under Ek’s leadership, Spotify has grown from a small Stockholm startup into the dominant force in music streaming, offering more than 100 million tracks to 696 million users and 276 million paying subscribers. The company’s second-quarter report showed steady subscriber growth, even as it raised prices across multiple regions in August—moving from €10.99 to €11.99 in Europe (about $12.90 to $14.08 in U.S. terms).

Revenue for the quarter came in at €4.19 billion, up 10% year-over-year, but shy of analyst expectations. Advertising, which has been a weak spot, slipped about 1%. Still, Spotify’s shares are up 54% this year, reflecting investor faith in its long-term growth, CNBC reported.

Revenue for the quarter came in at €4.19 billion, up 10% year-over-year, but shy of analyst expectations. Advertising, which has been a weak spot, slipped about 1%. Still, Spotify’s shares are up 54% this year, reflecting investor faith in its long-term growth.

In 2023, Spotify laid off 17% of its workforce—about 1,500 employees—in an effort to cut costs. At the time, Ek cited a slowdown in economic growth and rising expenses, saying the move was necessary to make Spotify leaner and more efficient.

One challenge Ek’s successors will inherit is the rise of AI-generated music. Spotify said last week it had removed 75 million AI spam tracks over the past year and tightened its policies to curb harmful use of the technology.

Spotify’s dominance today is a far cry from its early days. Launched in 2008, the platform popularized the freemium model—letting users stream for free with ads while nudging them toward premium subscriptions. Today, it remains the global leader in music streaming, with a subscriber base larger than its closest rivals combined.

For Ek, stepping aside as CEO marks the end of an era but not an exit. His next chapter will be about steering strategy rather than managing daily operations—a role that could prove just as consequential for the company he built from scratch.