More layoffs: Pandora cuts 20 employees

The online music company lays off 20 employees in a move that will hopefully make it fend off economic troubles. But with healthy growth, was that the best move?

Don Reisinger
CNET contributor Don Reisinger is a technology columnist who has covered everything from HDTVs to computers to Flowbee Haircut Systems. Besides his work with CNET, Don's work has been featured in a variety of other publications including PC World and a host of Ziff-Davis publications.
Don Reisinger

Pandora founder Tim Westergren announced on the company's blog Thursday that he is reducing the workforce by 20 employees. The layoffs will shrink Pandora's staff of 140 employees to 120.

"This is a very sad day for Pandora, and for me personally," Westergren explained. "Today we reduced our staff from 140 to 120 employees. Like virtually every company, Pandora is not immune to the challenges presented by the current economic turmoil. We are trying to react quickly and responsibly to the new environment.

Westergren did point out that there is a silver lining for his company, though. According to Pandora's founder, its user base is growing rapidly and the popularity of its iPhone app is allowing it to grow in other areas. So much in fact, that Pandora will be hiring more advertising sales representatives to help it handle its financial success over the past few months.

It's too bad that Pandora was forced to lay off some of its workforce. Now that the Internet royalty rate resolution is coming to a close and the company is experiencing explosive growth, it seems counter-intuitive for the firm to lay off a portion of its workforce.

Regardless, it has done just that. And in so doing has joined AdBrite, Zivity, and other companies that are trying to stay financially competitive amid changing economic conditions.