SiriusXM, the satellite tv for pc radio firm and Pandora proprietor, disclosed at present it’s shedding 475 workers, representing 8% of its workforce. In an e-mail despatched to workers, CEO Jennifer Witz stated the cuts would affect “almost each division” throughout the corporate, and observe a overview of SiriusXM’s operations introduced in November that aimed to establish areas the place it might enhance its agility and effectivity, she stated. As a part of that effort, the corporate made efforts to chop content material, advertising and marketing and discretionary spending, decreased its actual property footprint, and tightened up its journey and leisure coverage. Nevertheless, citing at present’s “unsure financial surroundings,” and the investments deliberate within the enterprise this 12 months, Witz stated headcut reductions have been additionally so as.
The information was introduced through an SEC submitting, which was first noticed by Selection.
“Over the previous 5 years, our enterprise has grown and expanded with the addition of latest acquisitions, enterprise strains, and income streams. Now, we have now accomplished an evaluation of our departments and features to find out the place we will enhance collaboration, consolidate groups to realize higher efficiencies, and in the end, design a corporation construction that’s greatest positioned to realize our priorities,” Witz wrote within the e-mail. “In consequence, almost each division throughout SiriusXM can be impacted. We consider the brand new operational design will enable us to maneuver sooner and extra successfully as we tackle new challenges throughout our enterprise.”
The corporate, as of its most up-to-date quarter, reported a complete achieve of 134,000 subscribers — an enchancment over the lack of 231,000 subscribers within the year-ago interval, bringing its self-pay subscriber based mostly to 32.4 million and its whole customers to 34.3 million. Nevertheless, its Pandora enterprise has not been faring as effectively amid competitors from rival streamers like these from Spotify, Apple, Amazon and Google. Within the remaining quarter of 2022, SiriusXM misplaced 52,000 internet self-pay Pandora subscribers, to finish the quarter with 6.2 million self-pay subscribers. Pandora’s month-to-month energetic customers had additionally dropped from 52.3 million to 47.6 million year-over-year.
Although Pandora was an early chief in music streaming, its proprietor has not but totally capitalized on its 2018 $3.5 billion acquisition. So far, it’s provided some integrations between the companies, together with a Pandora NOW station on the satellite tv for pc streamer and bundle reductions at instances.
Following the deal, the corporate in 2021 introduced in a former Disney+ exec, Joseph Inzerillo, as its new Chief Product Officer, who has been shaking up how a few of its inner workings function. As an example, Inzerillo just lately advised TechCrunch the corporate’s beforehand separated SiriusXM and Pandora engineering groups have been now fully built-in as the corporate aimed to strategy its companies going ahead in a “rather more platform-oriented view of this versus a product-specific factor.”
The corporate urged it had extra adjustments on the horizon for 2023, which started with elevated personalization for its SiriusXM app because it strikes farther from being a “radio”-style service with stations and buttons to 1 that’s modernized for at present’s extra digital automotive dashboards, like CarPlay.
Along with Pandora, SiriusXM over the previous few years acquired the podcast community Stitcher for $325 million in 2020 and, extra just lately, Conan O’Brien’s Group Coco podcast firm for $150 million in Could 2022. Witz advised traders in the course of the firm’s final earnings name that these acquisitions supplied the corporate with the chance to do cross-selling throughout stay broadcasts, music streaming on and off platform and podcasts. Nevertheless, she admitted, extra investments have been wanted throughout the trade to supply higher tech options for advertisers.
Within the e-mail to workers at present, Witz stated employes could be contacted immediately about their departure and would have the power to talk with a member of its Individuals + Tradition HR group. It’s additionally offering exit packages that embrace “severance, transitional medical health insurance advantages, Worker Advocacy Program continuation, and outplacement companies,” the e-mail famous.
