Add SiriusXM to the growing list of companies making major staff reductions.
The satellite radio service on Monday announced plans to cut 475 jobs, some 8% of its workforce, across all departments.
“The investments we are making in the business this year, coupled with today’s uncertain economic environment, require us to think differently about how our organization is structured,” said CEO Jennifer Witz in a message to staff. “Today’s decision to reduce our workforce was required in order for us to maintain a sustainably profitable company.”
The company’s stock hit a 52-week low on the news before rebounding slightly.
The layoffs weren't entirely unexpected. Last November, Witz alerted staff that a company review would occur in 2023, after broad expansion by SiriusXM. The company is continuing to move forward with plans for what Witz called “the launch of a new, best-in-class SiriusXM experience.”
SiriusXM, which made its app free during the heart of the pandemic, has been hit hard as car sales have slowed down in recent months. While the service streams to phones and other smart devices, its pitch of commercial-free radio with a wide variety of channels to choose from is more tailored to commuters. At the end of 2022, the company had 32.4 million paid subscribers. The number of trial subscribers, who often get a 30-day test of Sirius when they buy a new or used car, was down by nearly a quarter million.
“This was not an easy decision to make, nor one we took lightly,” said Witz. “However, it is critical for us to take the right steps now to secure the long-term health and profitability of our business… It is my belief that these tough decisions were necessary as we look to capture the opportunity in front of us.”
