Streaming music service Pandora is laying off about five percent of its employee base and taking “other cost-saving measures” in an attempt to save about $45 million annually. According to Pandora’s 8-K filing, employees were notified today of the plan and the company expects the staff reduction to be complete by the end of Q1 2018.
This is all part of an ‘organizational restructuring’ that will shift some resources to ad-tech and audience development. Pandora also announced plans to expand its presence and workforce to Atlanta.
With the expected $45 million in savings, Pandora plans to reinvest that money into ad-tech, non-music content, device integration and marketing technology. While Pandora has laid off some people, it will also hire for new roles.
“As I shared last quarter, we know where and how to invest in order to grow,” Pandora CEO Roger Lynch said in a press release. “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.”