Pandora Media Inc. will reduce its employee base by about 5% as part of cost-saving measures, according to a Jan. 31 Form 8-K filing.
It intends to redeploy existing employees and hire for new positions, as it plans to shift its focus on ad-tech and audience development efforts. The layoffs, which the company's board approved Jan. 11, are anticipated to be completed in the first quarter.
Pandora will also increase its workforce in Atlanta, where costs are lower than at its headquarters in Oakland, Calif.
The company expects to spend between $6.5 million and $8.5 million for the employees' severance and benefits cost. Meanwhile, cost savings from the layoffs, together with other measures, are anticipated to provide annualized savings of $45 million to Pandora's adjusted EBITDA.
