×
You will be redirected back to your article in seconds

Pandora Laying Off 5% of Its Employees

Pandora is pink-slipping about 5% of its workforce, a move the streaming-music company said will help it save $45 million annually.

According to Pandora, the restructuring will shift employee resources to focus on ad-tech and audience development efforts and will combine certain roles. Pandora also announced plans to expand its presence and workforce in Atlanta, a region that has lower costs than the company’s headquarters in Oakland, Calif.

The company — which has struggled to compete against rivals including Spotify and Apple Music — last reported a headcount of 2,488 employees as of the end of 2016.

Pandora shares rose 3% in after-hours trading Wednesday on the announcement, after closing up 3.7% earlier at $4.78 per share.

“We have an aggressive plan in place that includes strategic investments in our priorities: ad-tech, product, content, partnerships and marketing,” Pandora CEO Roger Lynch, who took the helm last fall after heading Dish Network’s Sling TV, said in a statement. “I am confident these changes will enable us to drive revenue and listener growth.”

The company’s board approved the restructuring plan on Jan. 11, and employees affected by the layoffs were informed of the plan on Wednesday, according to an 8-K filing with the SEC. Pandora expects the restructuring to be substantially completed by the end of the first quarter of 2018.

Pandora estimated that total costs and cash expenditures for the layoffs will be $6.5 million to $8.5 million, substantially all of which are related to employee severance and benefits costs.

Last year, Pandora laid off about 50 employees after it decided to shut down operations in Australia and New Zealand.

More Digital

  • JUMP camera

    Google Is Shutting Down Its Jump VR Video Program

    Google will shut down Jump, its cloud-based video stitching service, this summer. The company emailed creators Friday afternoon to tell them that Jump would be shuttered on June 28, and detailed plans for the shut-down on its website as well. In its email, Google justified the closure of Jump with the emergence of new video [...]

  • Relix Live Music Conference

    Relix Live Music Conference Puts Spotlight on Gender Parity, Privacy

    The third annual Relix Live Music Conference took place at New York’s Brooklyn Bowl earlier this week. The two-day confab, which featured panels and Q&As by executives from such companies as Live Nation, Q Prime, SiriusXM, Bowery Presents, Glassnote Music, Shorefire Media and Splice, among many others, offered a fascinating and honest look at the [...]

  • Spotify Tests 'Car Thing' Audio Adapter

    Spotify Starts Testing In-Car Hardware

    Spotify is carefully taking a first step into the consumer hardware space: The company has begun to test a new in-car device that lets users access music and podcasts with voice commands, it revealed in a blog post Friday morning. “Car Thing,” as the device is being called for now, is only being tested in [...]

  • Hannah-Hart-BuzzFeed-Tasty-Edible-History

    BuzzFeed's Tasty Taps Hannah Hart for Food-History Show on Facebook Watch

    YouTube star and food fanatic Hannah Hart is combining her passions for cuisine and history in a new series for BuzzFeed’s Tasty on Facebook Watch. The eight-episode show, “Edible History,” premieres Sunday, May 19, at 8 a.m PT, on BuzzFeed’s Tasty Presents show page on Facebook Watch, with episodes released weekly. In each episode (7-12 [...]

  • YouTube Music

    Songza Co-Founders Have Left YouTube Music Ahead of Google Play Music Shut-Down

    The three co-founders of Songza, a music curation startup acquired by Google in  2014, have left YouTube Music, Variety has learned. Former Songza CEO Elias Roman, former chief product officer Elliott Breece and former chief operating officer Peter Asbill all quietly transitioned to new positions at Google’s startup incubator Area 120 in March. A YouTube [...]

More From Our Brands

Access exclusive content