SiriusXM, the parent of SXM Media and Stitcher, is reportedly facing layoffs as the company’s satellite radio unit deals with a combination of slowing auto sales, which is the main source of its subscriber revenue, and a potential recession.
At a Nov. 28 company town hall, employees were notified of potential cuts as the audio company reviewed ways to reduce costs and increase efficiency, Bloomberg reports. “It may indicate the need for staff reductions,” management said in the meeting.
The company employed a workforce of 5,590 employees at the end of 2021. The exact number of potential cuts is not known.
As previously reported, subscriber and revenue increases at its core satellite radio service carried SiriusXM to a 4% year-over-year revenue gain to $2.28 billion in the third quarter. The company reported earnings were flat at $720 million. Its Pandora unit saw a 12% drop in profits. Analysts forecast a 1% sales growth in Q4, Bloomberg says, while noting its subscriber base of 40 million is roughly the same as it was three years ago.
In recent years, the company has been focusing on growing a younger subscriber base by upgrading and marketing its SXM app.
The economic uncertainty and slower sales have caused many companies in the tech and media industries to make similar cuts and take belt-tightening measures. Amazon and Facebook are dismissing a combined 10,000 employees, according to Bloomberg, while Spotify and Netflix made smaller cuts.
NPR recently announced a hiring freeze as it looks to cut $10 million from its current fiscal budget due to a $20 million decrease in subscriber revenue.