SiriusXM Cuts More Jobs as Advertising Revenue Faces Growing Pressure
SiriusXM announced another round of layoffs this week, primarily affecting the operations department and product and technology groups. This follows the company's previous reduction of approximately 100 jobs in January 2024.
The satellite radio provider faces multiple challenges:
- Revenue declined 3% to $8.7 billion in 2023
- Lost 296,000 subscribers, current total around 33 million
- Advertising revenue ($1.8 billion) represents 20% of total revenue
- Stock (SIRI) dropped 8.6% following news of reduced ad spending
- Failed launch of $9.99 monthly streaming app
SiriusXM display in car at dusk
Recent organizational changes include:
- Appointment of Scott Walker as Chief Advertising Revenue Officer
- Separation from parent company Liberty Media in September
- Ongoing restructuring efforts
- Renewed focus on core car-based users after streaming app setback
CFO Tom Barry expressed concern about the company's current situation, particularly regarding advertising revenue. The exact number of employees affected in this latest round of layoffs remains undisclosed, though the cuts primarily impact operations and technology departments.
SiriusXM's ability to stabilize its advertising business and retain subscribers will be crucial for future growth as the company continues its restructuring efforts post-Liberty Media separation.
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