US satellite tv for pc radio service SiriusXM is lowering its headcount by 475 roles, or 8% of its complete workforce.
The announcement follows the information from December that the corporate had warned of potential job cuts as a cost-saving measure in a November 28 city corridor with workers, Bloomberg Information reported on the time.
SiriusXM confirmed the information of the job cuts in an SEC submitting on Monday (March 6).
As of the top of 2022, SiriusXM had 5,869 full-time and part-time workers. The corporate’s workforce elevated by roughly 5% in comparison with the prior yr, in keeping with the corporate’s 2022 annual report.
In a letter shared with the corporate’s workers on Monday, CEO Jennifer Witz revealed that “practically each division throughout SiriusXM might be impacted” by the job cuts.
Witz added that SiriusXM is “coming into into a brand new part” for the Firm and that “the investments we’re making within the enterprise this yr, coupled with at the moment’s unsure financial setting, require us to assume in a different way about how our group is structured”.
Witz additionally instructed workers that the layoffs are “vital for us to take the precise steps now to safe the long-term well being and profitability of our enterprise.”
“The investments we’re making within the enterprise this yr, coupled with at the moment’s unsure financial setting, require us to assume in a different way about how our group is structured.”
For the calendar yr of 2022, SiriusXM posted annual revenues of USD $9.00 billion, up 4% YoY.
The agency recorded a $2.83 billion adjusted EBITDA within the interval, up 2% on the prior yr. Its pre-tax revenue in 2022 weighed in at $1.61 billion, up 5% year-on-year.
SiriusXm’s layoffs type a part of a wider development within the US media, music and tech industries, turning into the newest firm to scale back its headcount citing macroeconomic considerations.
In January, music streaming big Spotify revealed that may be lowering its personal world workforce by 6%.
In August 2022, music streaming platform and Spotify rival SoundCloud began the method of lowering its personal world workforce by roughly 20%
Additionally in August, US-based assortment society BMI (Broadcast Music, Inc) was reported to be shedding “just below 10%” of its complete workforce.
Quite a lot of silicon valley giants have additionally lowered their workforces in latest months.
In January, Alphabet, mother or father firm to Google was revealed to be reducing 12,000 roles (round 6% of its workforce).
The week previous to that additionally noticed Microsoft announce 10,000 job cuts.
In the meantime, Fb mother or father Meta introduced 11,000 job cuts in November, and Amazon introduced 18,000 cuts in January.
You may learn Jennifer Witz’s letter in full under:
I’ve some troublesome information to share.
After a overview of our enterprise, we now have made the choice to scale back the scale of our workforce by 475 roles, or 8%.
Sadly, this can imply saying goodbye to proficient colleagues throughout the group. Over the course of the day at the moment, impacted workers will start receiving invites to affix conferences with their respective chief and a member of our Individuals + Tradition group.
I wish to acknowledge that that is going to be a difficult day, particularly for these departing from the Firm, and I’d like to increase my deepest gratitude to everybody for his or her contributions to SiriusXM. Whatever the group, stage, or tenure, you performed a job in bringing our Firm to the place it’s at the moment and for that we’re grateful.
This was not a simple determination to make, nor one we took frivolously. Nevertheless, it’s vital for us to take the precise steps now to safe the long-term well being and profitability of our enterprise.
How did we get right here?
We’re coming into into a brand new part for our Firm. The investments we’re making within the enterprise this yr, coupled with at the moment’s unsure financial setting, require us to assume in a different way about how our group is structured.
As I shared in November, our planning course of for 2023 included an enterprise-wide overview of our enterprise to establish alternatives for better agility and effectivity. As a part of this effort, we recognized areas by which we may restrict discretionary spending to attenuate the affect of any extra wants for workers reductions.
We streamlined our non-headcount prices by lowering content material and advertising and marketing spend, lowering our actual property footprint, and most lately, implementing tighter restrictions in our Journey and Leisure coverage. Nevertheless, at the moment’s determination to scale back our workforce was required to ensure that us to keep up a sustainably worthwhile firm.
Over the previous 5 years, our enterprise has grown and expanded with the addition of latest acquisitions, enterprise strains, and income streams. Now, we now have accomplished an evaluation of our departments and capabilities to find out the place we are able to enhance collaboration, consolidate groups to attain better efficiencies, and finally, design a company construction that’s finest positioned to attain our priorities. Consequently, practically each division throughout SiriusXM might be impacted.
We consider the brand new operational design will permit us to maneuver quicker and extra successfully as we tackle new challenges throughout our enterprise.
For these leaving us, you can be contacted immediately concerning your departure, and you’ll have the chance to talk with a pacesetter out of your division in addition to a member of our Individuals + Tradition group.
We perceive that this transition received’t be simple, however please know that we’re dedicated to supporting you throughout this course of, and we’re offering exit packages that embody severance, transitional medical insurance advantages, Worker Advocacy Program continuation, and outplacement providers. As we speak is among the most troublesome days we’ve needed to face as a group, and these adjustments affect every of us deeply. Nevertheless, it’s my perception that these robust choices had been obligatory as we glance to seize the chance in entrance of us.
Collectively, we’re dedicated to delivering the most effective premium audio expertise in North America. We’re evolving our service to offer the subsequent era of listeners new methods to find and have interaction with our unimaginable programming and expertise. With our imaginative and prescient as clear as ever, and our working transformation now underway, we are going to proceed to make investments as we gear up for our subsequent main milestone: the launch of a brand new, best-in-class SiriusXM expertise.
Once more, to these impacted by these adjustments, I thanks for all that you just’ve executed to carry SiriusXM to the place it’s at the moment, and I want you all the most effective in your future endeavors. We’ll focus on these adjustments and our path ahead throughout our subsequent Firm-wide All Arms assembly. Within the meantime, I’ll be in contact later at the moment to share an replace and also you’ll additionally hear extra particulars out of your respective Govt Leaders all through the rest of this week. In closing, thanks to your focus, dedication, and resilience. This isn’t a simple second for any of us, so it’s extra essential than ever that we assist one another, and that you just lean on our leaders, together with me, as we work by way of subsequent steps.
Music Enterprise Worldwide