Music streaming service Pandora is preparing to cut around five per cent of its employee base as it seeks to cut costs with the restructuring of its business.
Pandora’s workforce is made up of somewhere in the region of 2,500 staff, meaning more than 100 jobs can be expected to be lost in the as a result of the cuts. The company expects the combination of job cuts and other cost-saving measures to result in annual savings of around $45m. It says these savings will be reinvested in areas such as ad tech, non-music content, device integration, and marketing technology.
“People spend more time on Pandora than any other digital platform in the country, and as our dynamic industry evolves, we must also evolve,” said Roger Lynch, CEO of Pandora. “As I shared last quarter, we know where and how to invest in order to grow. We have an aggressive plan in place that includes strategic investments in our priorities: ad-tech, product, content, partnerships and marketing. I am confident these changes will enable us to drive revenue and listener growth.”
The service also announced its plans to expand its presence and workforce in Atlanta, Georgia, rather than doing so at the company’s headquarters in Oakland, California, due to lower costs in the region.
“While we are committed to having Oakland remain our headquarters, we’re excited to build on the great foundation of our awesome team there and expand our presence in Atlanta over time,” said Lynch.