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Pandora Cutting Jobs Despite Estimated Fourth Quarter Revenue Gains

January 12, 2017, 11:23 PM UTC
Pandora To Raise $231 Million With Sale Of 10 Million Shares
The Pandora Media Inc. logo is seen on an Apple Inc. iPhone displayed for a photograph in Washington, D.C., U.S., on Tuesday, Sept. 17, 2013. Pandora Media Inc., owner of the biggest Web radio service, filed to raise about $231 million by issuing new shares after its stock more than doubled this year. Photographer: Andrew Harrer/Bloomberg via Getty Images
Photograph by Andrew Harrer — Bloomberg via Getty Images

Music streaming service Pandora said it would reduce about 7% of its U.S.-based workforce and also expects to surpass its previous fourth-quarter revenue forecast.

Shares of Pandora were up 6.8 at $12.81 in extended trading.

Pandora (P) said the job cuts, which would be executed by the end of the first quarter in 2017, are intended to reduce operational costs in 2017.

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As of Dec. 31, 2015, Pandora had 2,219 employees.

The company, which in October forecast fourth-quarter revenue in the range of $362 million to $374 million, said revenue would exceed its previous forecast due to higher advertising revenue and an increase in paid subscribers.