The CEO, President, and Marketing Officer Were All Let Go
As a major reshuffling begins at Pandora Media Inc (NYSE:P), the potential grows for more layoffs to reach U.S. soil.
The company ousted its CEO and installed its CFO, Naveen Chopra, as interim head of the company. It also axed the president, Mike Herring, and chief marketing officer, Nick Bartle.
This comes on top of a closing-down of its operations in Australia and New Zealand. The company has been trying to find a way to stem the losses, as it had to lay off seven percent of its U.S. workforce at the beginning of the year. The past layoffs, as well as the major shakeup, could mean that more layoffs in the U.S. are on the way for the internet radio company.
Still, Chopra tried to remain positive.
“Our strategy is to nail the passive listening experience and make sure we have on-demand as an option but not lose sight of our strength,” Chopra said at a media conference hosted by Bernstein Research. “The winners and losers in the music streaming space will be really be determined by who can build the most compelling consumer product.”
Pandora employs over 2000 people, and if the company cannot turn around its current fortunes, then expect some more of these employees to be laid off, including some in the U.S.
One of the major issues facing Pandora is the glut of companies currently operating in the music space. While the company tried to muscle in on the streaming industry, it appears that Spotify proved too big a behemoth to slay, and Pandora was unable to make substantial headway in that market.
The move was chided by investors from Sirius XM Holdings, who see Pandora’s free, ad-supported radio platform as the true bread and butter of the company. That service is accessed by 80 million listeners per month.
Whatever may come next for Pandora, the move must be a successful one in order to balance its current budget deficit and ensure that the 2000-plus employees are safe in their jobs after this recent round of layoffs in early 2017, as well as the closure of its Australian and New Zealand operations.
“Pandora’s New CEO: We Want to ‘Nail’ This Part of the Music Industry,” The Street, June 28, 2017.