Online radio company Pandora announced that it would slash 7 percent of its workforce by the end of the first quarter in a Thursday afternoon release, sending its stock soaring nearly 8 percent in after-hours trading.
In the release, Pandora announced that it now has more than 4.3 million paid subscribers and expects to exceed its previously announced guidance for its fourth-quarter performance, largely due to an increase in the company’s advertising business.
“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,” CEO Tim Westergren said in the release.