Streaming music pioneer Pandora has revealed plans to reduce its US-based workforce by roughly seven percent by the end of the first quarter. The job cuts won't affect employees of Ticketfly, the ticketing agency that Pandora purchased for $450 million back in 2015.
The news, pegged as a method of reducing overall operating costs in 2017, came as part of the company's announcement that it would beat the guidance it had set for the fourth quarter of last year.
In the guidance, Pandora CEO Tim Westergren said that with all of the elements of its strategy in place, the company is in the best position possible to expand its listener base, drive engagement and deliver significant value to shareholders.
Speaking of, share value in Pandora Media is up 6.25 percent on the news as of writing.
Pandora last month finally unveiled its long-awaited subscription service. The on-demand music streaming offering, dubbed Pandora Premium, generated more than 375,000 net new subscribers and has helped push Pandora past the 4.3 million paid subscriber mark.
Westergren said that while making workforce reductions is always a difficult decision, the commitment to cost discipline will allow them to invest more heavily in product development and monetization and build on the foundations of their strategic investments.
Pandora will share its fourth quarter and full 2016 financial results on February 9.