Eleven months after SiriusXM cut 8% of its workforce, the company announced Monday (February 12) that it will lay off another 3% of its workforce. The layoffs will affect about 170 jobs based on the company's headcount of 5,680 full- and part-time employees as of Dec. 31, according to Annual Report 2023.
The cuts will affect every team and business unit and allow SiriusXM to invest in its content, marketing and technology platform, a company spokesperson said Advertising sign.
In a memo to staff announcing the cuts, the CEO Jennifer Vitch used much of the same language used by executives at Universal Music Group, Warner Music Group and Spotify to explain decisions to restructure those companies and cut staff. Not only is SiriusXM reducing its salary costs, it's also building for the future and investing in new technologies.
“We've made significant progress in transforming our business in 2023, but we've only just begun to scratch the surface of what's possible here at SiriusXM,” Witz wrote in the note. “To continue on our path to future subscriber growth and sustain our Company's success as the competitive landscape evolves, it is imperative that we become even more efficient, agile and flexible. Therefore, today we are making several organizational changes, including the difficult decision to eliminate some roles, that will allow us to move faster and work together more effectively in support of our long-term goals. From bringing teams together and better aligning initiatives, to investing in new technologies to fuel our transformation, we're focused on increasing efficiency and reallocating resources to support our business' strategic priorities.”
The once-reliable revenue growth has been harder to come by as many consumers shift their listening to streaming services. In 2023, SiriusXM's revenue fell 0.6% to $7.95 billion as the company lost 445,000 self-pay subscribers to its satellite radio service. Despite reducing headcount to 5,680 from 5,869 in 2023, general and administrative expenses rose 5% to $550 million last year and operating margin fell from 22.6% to 21.7%.
SiriusXM hopes its revamped streaming app — and its $9.99 per month price, which is lower than its satellite radio service — will attract new subscribers and signal a return to revenue growth. The new app went live on Dec. 14 and is “yielding promising signs of improved engagement,” Witz said during the Feb. 1 earnings call. App personalization capabilities and reduced latency, along with a redesigned SiriusXM logo, have created “a positive lift in brand awareness among the growing audience segments we want to attract,” he added.
Investors tend to react positively to news of layoffs being made to cut costs and accelerate a transformation. Shares of SiriusXM rose as much as 3.1% to $5.05 on Monday morning and settled at $5.01, up 2.1%, in the afternoon.
from our partners at https://www.billboard.com/business/radio/siriusxm-layoffs-job-cuts-fund-new-tech-subscriber-loss-1235605853/
