Sirius XM Slashes Jobs in a Reorganization

Key Takeaways

  • Sirius XM Holdings (SIRI) introduced that it might reduce 8% of its workforce because it reorganizes its operations.
  • In February, the corporate issued 2023 income and EBITDA steering that got here in beneath analysts’ expectations.
  • Shares of the satellite tv for pc radio firm gained 1% following the announcement however stay down 26% 12 months so far.

Sirius XM Holdings (SIRI) introduced that it was chopping jobs and reorganizing operations a month after it gave a weaker-than-expected full-year outlook.

CEO Jennifer Witz wrote in a letter to workers that the corporate could be eliminating 8% of its workforce, or 475 workers. She indicated that, regardless of earlier efforts to scale back prices, the layoffs “have been required to ensure that us to take care of a sustainably worthwhile firm.”

Witz defined that Sirius XM was “getting into a brand new part.” She stated that, following a evaluate of the enterprise, the corporate discovered that the investments it’s making this 12 months, coupled with an unsure financial surroundings, required administration to “suppose otherwise about how our group is structured.”

She added that the modifications coming to the corporate will influence practically each division and that the brand new operational design “will permit us to maneuver quicker and extra successfully as we tackle new challenges throughout our enterprise.”

Sirius reported final month that it anticipated 2023 income to be roughly $9 billion, the identical as in 2022, and earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) of $2.7 billion. Each have been wanting analysts’ estimates.

Shares of Sirius XM Holdings have been up 1%. They’ve been buying and selling close to a greater than six-year low and are down 26% to date this 12 months.

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