The music streaming service announced that it will lay off seven percent of its workforce this quarter as part of a cost-cutting measure.
The industry pioneer has been facing stiffer competition from competitors Amazon, Apple, Google, Spotify, iHeartRadio and Tidal (to name a few in the crowded space). Rumors have swirled that a takeover could be imminent.
[Free download: 13 musts for breaking bad news to employees.]
Pandora’s chief executive, Tim Westergren, said in a statement:
While making workforce reductions is always a difficult decision, the commitment to cost discipline will allow us to invest more heavily in product development and monetization and build on the foundations of our strategic investments.
The announcement caused Pandora’s stock to jump this week, as the staff reductions will enable the company to beat its earnings forecast.
Pandora’s own paid subscriber base has grown to more than 4.3 million. The service boasts around 80 million unique users, which means that the bulk of its dollars are coming from advertising revenue.
However, the numbers weren’t enough to stave off staff cuts.
By the end of December last year, Pandora Plus added more than 375,000 new subscribers, the company said. Pandora also said that it showed “strong advertising performance,” though didn’t clarify exactly what that meant.
In total, around 155 of the company’s more than 2,200 employees are expected to be laid off.
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from PR Daily News Feed http://ift.tt/2jNaCol
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