Digital music service Pandora has announced plans to lay off around 7 percent of its US workforce by the end of the first quarter in a cost-cutting measure. In a statement, the company added that it expected to beat previously announced guidance for the fourth quarter thanks to strong advertising performance and a rise in paid subscription customers to 4.3 million. "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," said Pandora CEO Tim Westergren.
Pandora recently launched a new USD 4.99 a month ad-free subscription service called “Pandora Plus” and added new features to its free ad-supported option. Last year the company was said to be working with Morgan Stanley to line up potential buyers, according to the New York Times, with CNBC reporting last month that Pandora was open to selling itself to Sirius XM.
