LONDON (AP) — Spotify said Tuesday that founder Daniel Ek is stepping down as CEO to become the executive chairman, in an announcement that sent its shares sliding in Tuesday trading.
The Stockholm-based streaming giant said Ek will be replaced by two lieutenants who will become co-CEOs: Chief Product and Technology Officer Gustav Söderström and Chief Business Officer Alex Norström. The pair, who are also currently copresidents, will transition into their new jobs on Jan. 1 and will report to Ek.
Spotify said in a press release that the move “formalizes” how Spotify has been operating since 2023, with Söderström and Norström largely leading strategic development and operational execution.
Ek said that he had already “turned over a large part of the day-to-day management and strategic direction” to the pair.
“This change simply matches titles to how we already operate,” he said. As executive chairman, Ek said he will focus on Spotify’s “long arc.”