Pandora shares rose 2.5% during the after-hours trading on Wednesday. The company said layoffs will save the company about $45 million a year. It is not yet clear how many jobs this layoff will affect. Pandora disclosed the official number of employees for the last time in December 2016, when there were a total of 2488 employees.
“This adjustment will shift resources to initiatives such as advertising technology and user development,” the company said in a statement. At present, the online music industry has set off a market share war. Apple, Google and other companies have intensified their own services to attract new users.
The company also disclosed plans to expand the number of businesses and employees in Atlanta. Pandora CEO Roger Lynch stated in a statement: “Atlanta is a city with a long history of music and a wealth of technical talent that will benefit our expansion. Although we are committed to making Auckland a headquarters, we are happy to be able to Based on the excellent team here, we will grow and expand and gradually expand our business in Atlanta.”
It is reported that the layoffs and “other cost-saving measures” are expected to save the company $45 million in adjusted income each year. According to this document, this reduction plan was approved by the board of directors on January 11 and the affected employees were notified on Wednesday. The layoffs will cost the company $6.5 million to $8.5 million in severance and welfare expenses.