SiriusXM is the latest radio group to undergo layoffs, marking the company’s third consecutive year to host a reduction in force. The number of employees cut by the satellite broadcaster is still unknown at this time, but the product and technology divisions are reportedly the hardest hit.
First reported by Billboard, the RIF revolves around SiriusXM’s return to marketing its in-car product after a year of heavily promoting its app offering in the hopes of attracting younger subscribers. In March 2023, SiriusXM announced a workforce reduction of 475 employees, accounting for 8% of its workforce, after foreshadowing such an action.
That was followed by a 3% cut in February 2024.
SiriusXM reported Q4 2024 revenue of $2.19 billion and full-year revenue of $8.7 billion, down 4% and 3% from 2023. The company ended the year with 33 million subscribers, seeing a net decline of 296,000 for the year.
As for that aspect of the future, SiriusXM CFO Tom Barry discussed the company’s plans for an ad-supported tier at the Deutsche Bank Media, Internet & Telecom Conference on March 11.
“In having an ad-supported tier, it gives us a place where we can market to these individuals. We can bring them up to a higher price point as they appreciate and they increase their engagement in the product,” Barry said. He noted that the company is still working to balance ad demand with subscriber engagement and expects to launch the tier in the near future.
This appears to be a separate initiative from the company’s “Free Access” plan, which aims to keep 360L hybrid car radio users engaged after their subscriptions or trials expire. Initially launched in Nissan and Polestar vehicles, the service offers 41 curated channels, with plans to expand to more automakers and introduce hyper-personalized ads later this year.
