SiriusXM revealed Monday that it is slashing its workforce by several hundred.
In the headcount reduction, 475 workers are losing their jobs, according to a message from CEO Jennifer Witz to employees that was published on the company’s website. The cuts touch almost every department and equate to 8% of its total headcount.
More than 5,800 people comprised SiriusXM’s workforce at the end of 2022, according to the company’s latest annual report. It said the "overwhelming majority" were full time.
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"The investments we are making in the business this year, coupled with today’s uncertain economic environment, require us to think differently about how our organization is structured," Witz said.
Severance, transitional health insurance benefits, employee advocacy program continuation and outplacement services will be offered to those who get laid off, according to the SiriusXM CEO’s memo.
To maintain a "sustainably profitable company," Witz said the layoffs are needed. Including SiriusXM, numerous companies in sectors ranging from tech and finance to consumer products and media have indicated that in 2023 they are trimming the number of people they employ, as FOX Business previously reported.
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SiriusXM had taken steps such as "reducing content and marketing spend, decreasing our real estate footprint, and most recently, implementing tighter restrictions in our Travel and Entertainment policy," according to the CEO.
"Today is one of the most difficult days we’ve had to face as a team, and these changes impact each of us deeply," Witz wrote. "However, it is my belief that these tough decisions were necessary as we look to capture the opportunity behind us."
In February, SiriusXM said that in the fourth quarter it generated $2.28 billion in revenue, a slight increase from the same three-month period in the prior year, and $365 million in net income, a roughly 14.8% year-over-year jump.
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Its full-year revenue and profit, meanwhile, came in at $9 billion and $1.213 billion, respectively, according to the company. That revenue figure was higher in comparison to the $8.7 billion from the prior year, while the full-year profit marked a 7.7% decline.
