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The layoffs impacting the media and entertainment industries have hit SiriusXM.
The satellite radio giant is laying off 475 people, or about 8 percent of its workforce, according to a memo to staff Monday from CEO Jennifer Witz. She said that “nearly every department across SiriusXM will be impacted,” and that employees will be notified Monday.
“We are entering into a new phase for our Company. 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,” Witz wrote, adding that the company has been reviewing its cost structure since November. “We streamlined our non-headcount costs by reducing content and marketing spend, decreasing our real estate footprint, and most recently, implementing tighter restrictions in our Travel and Entertainment policy. However, today’s decision to reduce our workforce was required in order for us to maintain a sustainably profitable company.”
SiriusXM told analysts in February that it expects to see a modest drop in subscribers this year, due to concerns with the broader economy and challenges facing the car industry in particular (a significant number of subs join when they buy a new car, and automakers are still having trouble with supply chains).
And SiriusXM, like the rest of the media industry, has seen its advertising business suffer in recent months. The company continues to invest in new products, including development of a next-generation offering, and in individual talent like Conan O’Brien, who sold his Team Coco podcast business to SiriusXM last year.
“Today is one of the most difficult days we’ve had to face as a team, and these changes impact each of us deeply,” Witz wrote. “However, it is my belief that these tough decisions were necessary as we look to capture the opportunity in front of us.”
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