SiriusXM Announces Fresh Wave of Layoffs as Advertising Revenue Declines
SiriusXM has initiated another round of layoffs, primarily affecting the operations department's product and technology group. This follows the company's previous reduction of approximately 100 jobs in January 2024.
The satellite radio company 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
Recent organizational changes include:
- Separation from parent company Liberty Media in September
- Appointment of Scott Walker as Chief Advertising Revenue Officer
- Failed launch of $9.99/month streaming app
- Renewed focus on core car-based users
SiriusXM display in car at dusk
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.
These developments highlight SiriusXM's ongoing challenges in diversifying its business model and maintaining growth in an increasingly competitive audio entertainment market. The company's ability to stabilize its advertising business will likely determine its future growth potential.
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