SiriusXM cutting 8% of workforce

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SiriusXM, the satellite radio company that is parent to Pandora and a minority investor in SoundCloud, announced Monday it is eliminating 475 jobs — or about 8% of its workforce — as part of a broader restructuring resulting from economic uncertainty and new business investments.

Why it matters: SiriusXM makes the vast majority of its revenue (roughly 80%) from subscriptions, but subscriber growth slowed in 2022 due to broader macroeconomic headwinds, including supply chain issues impacting new car sales.

Details: Nearly every department across SiriusXM will be impacted by the cuts, according to staff note from CEO Jennifer Witz posted online.

  • Impacted employees will receive exit packages that include severance, transitional health insurance benefits, Employee Advocacy Program continuation, and outplacement services, Witz noted.

Between the lines: SiriusXM has made a number of acquisitions in the past few years, expanding its focus from satellite radio subscriptions to music, podcasts and more.

  • Witz said that the company tried to find other opportunities to become more agile and efficient without layoffs, including identifying areas where it could limit discretionary spending and reducing its real estate footprint, but ultimately, layoffs were required in order for SiriusXM "to maintain a sustainably profitable company."

The big picture: Nearly every major media and tech firm has been hit with sweeping layoffs as the market continues to recover from a slowdown in 2022.

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