Streaming music service Pandora to shift workers to Atlanta


Music streaming service Pandora said this week it plans to move an unspecified number of workers to Atlanta as part of a broader restructuring of its business.

The Oakland, Calif.-based company said in a Securities and Exchange Commission filing it will cut 5 percent of its workforce as part the restructuring plan, which it expects will result in about $45 million in annual cost savings. The changes, in addition to cutting costs, will focus on advertising technology and audience development.

VIDEO: More on music streaming services

Pandora competes in the crowded streaming music business against rivals such as Spotify, Apple Music and Amazon. The company said in November it had 5.2 million total subscribers, of which 1 million were paid users of its premium service.

The popularity of streaming services has boomed in recent years. A federal copyright board recently raised royalties for streamed songs to songwriters and music publishers, the Associated Press reported, which could increase costs for the streaming companies.

Pandora reported it had 2,488 employees at the end of 2016 and 5 percent of that figure would amount to about 125 workers.

Representatives of Pandora declined to provide details on the number of workers that might move to the company’s Atlanta office. The company said more information will be available during the company’s next earnings call on Feb. 21.

The company occupies space in a tower on 17th Street in Atlantic Station.

A press release said the Atlanta move would be an expansion of Pandora’s workforce and presence here, and said the move would provide “a significant opportunity to add instrumental talent in a region with lower costs than the company’s headquarters in Oakland.”

“Atlanta is a city with a rich history in music and a large pool of diverse tech talent that we can tap into as we scale,” Pandora CEO Roger Lynch said in the release. “While we are committed to having Oakland remain our headquarters, we’re excited to build on the great foundation of our awesome team there and expand our presence in Atlanta over time.”

Pandora reported a net loss to common shareholders of $506.5 million in the first nine months of 2017 on revenue of $1.07 billion.

MYAJC.COM: REAL JOURNALISM. REAL LOCAL IMPACT.

AJC Business reporter J. Scott Trubey keeps you updated on the latest news about economic development and commercial real estate in metro Atlanta and beyond. You'll find more on myAJC.com, including these stories:

Never miss a minute of what's happening in local business news. Subscribe to myAJC.com.



Reader Comments ...


Next Up in Business

Is active or passive investing best? You may be surprised
Is active or passive investing best? You may be surprised

It’s hard to believe, but we’re more than halfway through 2018. So far, it’s been a year of market ups and downs. We’ve endured a correction, experienced a rebound, and are now back closer to flat. The recent choppiness makes this a good time to revisit the great debate between active and passive investing. Last year, an email...
Atlanta company eyeing sports betting industry outside Georgia
Atlanta company eyeing sports betting industry outside Georgia

When Inside Injuries launched in 2016, the company was intended to supply fantasy sports players and companies with injury analysis on top players across sports, CEO Tracy Hankin said. Sports betting wasn’t in the company’s sights. A Supreme Court ruling in May, which struck down a federal law outlawing sports betting outside of Nevada...
No, you don’t need a perfect score to be an exceptional borrower

WASHINGTON — I have been told many times that I’m a perfectionist, but I feel that I’m not perfect enough for such a label. Yet it’s true that my life is driven by a relentless report-card-like quest for excellence. This is why I understand people with super-high FICO credit scores who seethe that they have yet to get a perfect...
Man fired after encounter with 'racist' customer. After sharing story, Home Depot offers job back.
Man fired after encounter with 'racist' customer. After sharing story, Home Depot offers job back.

After a man last Thursday approached the checkout at a Home Depot in Albany, New York, staff member Maurice Rucker asked him to leash his dog. That's when the man exploded. » RELATED: Atlanta's Home Depot growing in various ways, but not new stores Rucker, a 60-year-old black man, claimed he was fired Tuesday after defending himself from...
Peach problem: Georgia fruits clobbered again
Peach problem: Georgia fruits clobbered again

Uncooperative weather has taken a jumbo bite out of the Peach State’s peach crop , a second year of pain for growers of the iconic fruit. And similar hardship appears to have eliminated half Georgia’s more lucrative blueberry yield. The difficult years have left Atlanta shoppers in the produce aisle facing the prospect of paying...
More Stories