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.
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.