(Reuters) – Pandora Media Inc will cut 5 percent of its workforce and take other measures to save costs, as it battles intense competition in the online music streaming market.
Shares of the company were up 2.5 pct in extended trading on Wednesday.
Pandora said the move would result in annual savings of about $45 million to adjusted earnings before interest, taxes, depreciation and amortization.
The company currently has 2,488 employees, according to Thomson Reuters data.
“The redesign shifts resources to focus on ad-tech and audience development efforts…,” it said in a statement.
The online music streaming industry has become a battleground for market share, with companies such as Apple Inc and Alphabet’s Google bolstering their services to attract new users.
Pandora said it expected a lower percentage of revenue in full-year 2018, hurt by operating expenses required for cost cuts.
The company also disclosed its plans to expand presence and workforce in Atlanta, saying the lower costs of the region compared to its headquarters in Oakland, California, provides a “significant opportunity.”
Reporting by Munsif Vengattil in Bengaluru; Editing by Anil D’Silva