Pandora to cut 7 percent of workforce
Stock spikes 7 percent on news the music-streaming giant will exceed previous guidance for its fourth quarter.
Pandora said Thursday it plans to shave 7 percent off its workforce in a move that may make the internet radio giant more appealing to prospective buyers.
The Oakland, California-based company said it expects to complete the layoffs in the first quarter of 2017 as part of a cost-cutting measure. The music-streaming service had 2,219 employees as of the end of 2015, according to Reuters, meaning the job cuts will eliminate about 155 positions.
"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," Pandora CEO Tim Westergren said in a statement.
Pandora, the internet's largest streaming-music service, is feeling the pinch as listeners move toward rivals such as Spotify and Apple Music , which allow on-demand listening to specific tracks.
The job cuts come a little more than a month after it was reported that Pandora was interested in selling itself to one-time suitor Sirius XM. The company had also held talks a year ago about selling itself and was working with Morgan Stanley to line up potential buyers, sources tell The New York Times.
Pandora said it expects to exceed previously announced guidance for the fourth quarter when it reports its financial results on Feb. 9. Its stock was up more than 7 percent in after-hours trading to $12 a share.
Pandora didn't immediately respond to a request for further information.
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