Pandora to shutter operations in Australia and New Zealand

download (3) — A person holds a smart phone with the Pandora app showing in New York U.S., June 9, 2017. Reuters/Shannon Stapleton

Pandora is reportedly planning to stop offering services in Australia and New Zealand. The streaming radio service has opted to focus business solely in the United States.

A Pandora spokesperson told Billboard on Tuesday about the company’s plan. "While our experience in these markets reinforces the broader global opportunity long-term, in the short-term we must remain laser-focused on the expansion of our core business in the United States," the spokesperson said.

The representative said that much analysis was conducted before the company came with the decision to discontinue operations in the two countries over the next few weeks. Australia and New Zealand are currently the only non-US locations where Pandora operates.

This means offices in both locations will be shuttered. The service has around 5 million listeners in the two countries and employs about 60 people at its offices in Australia working in sales, rev ops, creative services, HR and marketing.

Pandora founder steps down

Pandora founder Tim Westergren stepped down on Tuesday from his position as CEO. He also left the company's board of directors. Westergren has issued a statement to address the news, saying Pandora is "perfectly poised for its next chapter.” The company launched its "Pandora Premium" as well as a huge investment from SiriusXM under his leadership.

Westergren said he is “incredibly proud” of the company. “We invented a whole new way of enjoying and discovering music and in doing so, forever changed the listening experience for millions,” his statement reads.

As the service prepares to close in Australia and New Zealand, Pandora president Mike Herring and CMO Nick Bartle are also reportedly leaving the company. The company had 4.71 million subscribers across its Pandora Plus and Pandora Premium subscription options as of Q1 2017. It has over 80 million active users.

Sydney is home to its largest international office. Pandora also has a satellite office in Melbourne that houses rev ops and sales departments. The Pandora office in New Zealand is located in downtown Auckland.

The company has partnerships with Woolworths and Rolling Stone, among other brands in Australia. The announcement comes on the heels of some deals that aim to stabilize its balance sheet, particularly a $480 million investment by SiriusXM.

Board member Roger Faxon has revealed that over the past weeks, the board has taken several steps to refocus and reinforce the company. For other business news, watch the video below.

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