Report: Layoffs Hit SiriusXM As It Looks For Cost Savings.

Just weeks after SiriusXM said more cost-cutting was in the works, the company has reportedly instituted a round of layoffs. Axios says the satellite broadcaster laid off 100 employees on Tuesday, Jan. 28. The figure is said to represent less than 2% of its workforce. Organizational changes are also being made. SiriusXM laid off 3% of its workforce in February 2024.

SiriusXM said last month that it will be “further optimizing efficiencies” across the business. The company wants to find $200 million in additional cost-savings by the end of 2025 on top of the $350 million of cuts it has already made across the organization. CEO Jennifer Witz told an investor conference last month that they will look at marketing expenses for some of those cuts, particularly as they scale back efforts to reach young streaming listeners. They also hope to use AI to create more personalized pitches.

The cutbacks also come as SiriusXM has told investors the company expects a decline in revenue this year. SiriusXM expects total revenue of $8.5 billion, with $2.6 billion in adjusted earnings. That will be a drop from the expected $8.7 billion in revenue for this year and $2.7 billion in earnings.

“At SiriusXM, we are focusing on the strengths that set us apart — including our strong core subscriber base, our unique position in-vehicle, and our unrivaled, curated content — and taking steps to drive profitability and cash flow as we face marketplace headwinds impacting the company’s growth trajectory,” Witz said on an earnings call. “We have a clear path forward and are confident we can deliver for our stockholders.”

The effort to cut expenses comes as SiriusXM has shifted its focus away from digital delivery and back to its core satellite radio business, and hired COO Wayne Thorsen to oversee business development and corporate strategy. SiriusXM has been struggling ever since the pandemic upended media and commuting habits, and car sales plummeted. Overall declined 4% from a year earlier during the third quarter, and the company reported a net loss of $2.96 billion. SiriusXM also lowered its Q4 2024 revenue guidance by $75 million. The company will report its year-end earnings on Thursday (Jan. 30).