US satellite radio service SiriusXM has announced another round of layoffs on Monday (February 12), impacting roughly 3% of its staff.
News of the latest layoff was picked up by Billboard, citing a company spokesperson and a memo to staff written by CEO Jennifer Witz.
The move arrives 11 months after a previous 8% reduction that affected 475 roles. The latest round of cuts will affect around 170 employees based on the company’s head count of 5,680 full-time and part-time employees as of the end of 2023.
It comes as SiriusXM seeks to streamline operations and fuel investments in content, marketing, and its technology platform, a spokesperson reportedly told Billboard.
CEO Jennifer Witz echoed similar justifications used by other media companies like Universal Music Group and Spotify, emphasizing the need for agility and flexibility in a changing landscape. Last month, UMG was reported to be slashing “hundreds” of jobs in the first quarter, while Spotify in December announced that it is trimming 17% of its global workforce.
“We made significant progress on the transformation of our business in 2023, but we have just begun to scratch the surface of what is possible here at SiriusXM.”
Jennifer Witz, SiriusXM
“We made significant progress on the transformation of our business in 2023, but we have just begun to scratch the surface of what is possible here at SiriusXM,” Witz wrote in the memo cited by Billboard and The Hollywood Reporter.
“To continue on our path to future subscriber growth and sustain our company’s success as the competitive landscape evolves, it’s imperative that we become even more efficient, agile, and flexible. Therefore, today we are making several organizational changes, including the difficult decision to eliminate certain roles, which will allow us to move faster and collaborate more effectively in support of our long-term objectives.”
“From uniting teams and better aligning initiatives, to investing in new technologies that will power our transformation, we are focused on increasing efficiencies and redeploying resources to support the strategic priorities of our business.”
“To continue on our path to future subscriber growth and sustain our company’s success as the competitive landscape evolves, it’s imperative that we become even more efficient, agile, and flexible. Therefore, today we are making several organizational changes, including the difficult decision to eliminate certain roles.”
Jennifer Witz, SiriusXM
The company faces challenges including declining revenue growth, with 2023 seeing a slight dip and a loss of nearly half a million satellite radio subscribers. Despite previous headcount reductions to 5,680 from 5,869 in 2023, expenses haven’t fallen accordingly, prompting further action.
However, SiriusXM remains optimistic. Their revamped streaming app, launched in December at a $9.99-a-month price point and touted as a Spotify challenger, reportedly shows promising signs of engagement.
However, last month, New York Attorney General Letitia James sued SiriusXM, accusing the company of “trapping consumers in unwanted subscriptions” through deceptive and burdensome cancellation practices. The lawsuit came five months after SoundExchange filed a lawsuit against SiriusXM over allegedly failing to pay $150 million in royalties to artists and rightsholders.
Pandora Media, which SiriusXM acquired in 2019 in a $3.5 billion all-stock transaction, is also facing a lawsuit in the US brought by The Mechanical Licensing Collective, which is accusing the company of underpaying royalties owed to rights holders.
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