The layoffs have had an impact on the media and entertainment industry, affecting SiriusXM.
The satellite radio giant is laying off 475 people, or about 8 percent of its workforce, according to a memo Monday to employees from CEO Jennifer Witz. She said that “virtually every department at SiriusXM will be affected,” and that employees will be notified on Monday.
“We are entering a new phase for our company. The investments we are making in the business this year, combined with today’s uncertain economic climate, require us to think differently about how our organization structured,” Witz wrote, adding that the company has been reviewing its cost structure since November. “We streamlined our non-headcount costs by reducing content and marketing spend, reducing our real estate footprint, and most recently, implementing tighter restrictions in our travel and entertainment policy. However, today’s decision to reduce our workforce was necessary for us to continue to be a profitable company.
SiriusXM told analysts in February that it expected to see a slight decline in subscriber numbers this year, due to the challenges facing the broader economy and the car industry in particular (when they buy a new car, and automakers make big join the numbers) still having trouble with supply chains).
And SiriusXM, like the rest of the media industry, has seen its advertising business suffer in recent months. The company continues to invest in new products, including the development of next-generation offerings and individual talent such as Conan O’Brien, who last year sold his Team Cocoa podcast business to SiriusXM.