Picture Credit score: SiriusXM
SiriusXM makes a brand new spherical of layoffs this week after slicing about 100 jobs in January. The variety of affected workers this spherical was undisclosed.
The layoffs came about on Monday, in response to an organization spokesperson. They affected the operations division, principally the product and expertise group. These layoffs are a part of SiriusXM’s broader strategic focus introduced late final 12 months.
The information comes only a couple months after SiriusXM eradicated roughly 100 jobs in January, or lower than 2% of its workforce. The corporate has undergone a number of modifications over the previous few months, most just lately appointing govt Scott Walker as its Chief Promoting Income Officer. Walker changed John Trimble, who’s retiring after 16 years with SiriusXM.
In the meantime, SiriusXM parted from its father or mother firm, Liberty Media, in September. Revenues have been down by 3% final 12 months, to round $8.7 billion; about 20% of that income ($1.8 billion) got here from promoting, whereas the majority of its gross sales got here from subscriptions. The corporate has round 33 million subscribers, but it surely misplaced round 296,000 simply final 12 months.
Already in cost-cutting mode, the corporate’s inventory (SIRI) took an 8.6% dive on Tuesday, blamed on the current discount in advert spending. “Proper now, we’re somewhat involved,” admitted CFO Tom Barry. Since promoting introduced in 20% of SiriusXM’s income final 12 months, such a dramatic dip alerts potential hassle for the corporate’s advert gross sales.
No headcount numbers have been disclosed as to the newest spherical of layoffs, but it surely follows a discount of 100 workers firstly of the 12 months. The corporate continues to be restructuring since its spinoff from Liberty Media, however that dip in practically 300K subscribers since final 12 months doesn’t bode properly.
That’s on high of the failed streaming app SiriusXM launched for $9.99 a month; the corporate shortly refocused on their car-based customers when the cellular app failed to select up any traction. The corporate is discovering it tough to diversify, and whether or not it is going to be in a position to stabilize its advert enterprise can have a large impression on whether or not SiriusXM will be capable to discover alternatives for development.
