SiriusXM has reportedly eliminated about 100 roles across its company as the audio provider looks to focus on its audio business distributed in cars rather than streaming. The layoffs occur as the company looks to find $200 million in annualized cost savings by the end of this year. The satellite radio provider acknowledged that it is facing “marketplace headwinds” and expects a decline in annual revenue. This elimination of 100 positions in the company represents less than 2% of its workforce. It remains unknown how many of these layoffs affected those working on sports content with the company.
These job cuts follow a reduction of about 3% of the company workforce last year when the company eliminated 160 jobs. SiriusXM chief executive officer Jennifer Witz explained in an email to staffers last year that it was imperative that the company becomes “more efficient, agile and flexible.” These current layoffs take place shortly before the company is set to report its quarterly earnings on Thursday, Jan. 30 with revenue guidance lowered to $75 million.
“We’re nearing the end of a profoundly challenging day — one that has touched all of us deeply and it’s important to take a moment to process today’s events,” Witz said in an internal email. “We parted ways with team members and friends across the Company; this is never easy. In this moment, we must lean on one another for support while focusing on the path ahead.
“Deciding to eliminate roles is incredibly difficult. However, it is a necessary step as we continuously evaluate our structure to ensure our business is set up to succeed in the future. As we move forward on our path to becoming more efficient, nimble, and flexible, the organizational changes implemented today will make us stronger, and better positioned to achieve our long-term objectives and more focused strategy. We are driving ahead with three primary goals in mind: delivering more value to our core subscribers, continuing to expand our ad business, and functioning as an even more efficient, ROI-driven organization.”
SiriusXM is coming off a quarter in which it reported adjusted EBITDA of $693 million, a figure that was down 7% year-over-year and attributed to diminished subscriber revenue. Concurrent with this report, SiriusXM adjusted its full-year revenue guidance to $8.675 billion, but it also stated that it was still aligned to “generate approximately $2.7 billion in adjusted EBITDA and $1 billion in free cash flow in 2024.”
The change in company strategy occurs just over a year after the company unveiled a new brand identity and application accessible to listeners through automobiles and other devices. During a media event, the company divulged that it viewed local sports content as being national and explained that it would “try to put together an audio DNA recommendation” to streamline content for consumers. SiriusXM had also stated that the combination of a low churn rate, core audience and growth opportunity accounted for 84% of total audio spend. SiriusXM continues to invest in its content, recently agreeing to deals with SmartLess Media and Alex Cooper’s Unwell Network.
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