Is SiriusXM doing layoffs in 2024?

Is SiriusXM doing layoffs? SiriusXM, a big company offering many different audio shows and music, recently shared some news. They said they had laid off about 3% of their workers to make things more efficient. This decision was part of their plan to use new and advanced technologies. But why did they do this, and what could it mean for the company’s future? Let’s find out!

In February 2024, SiriusXM said they would lay off 3% of their staff, affecting around 170 jobs. This came after they already cut 8% of their workers in 2023. The layoffs touched every team and part of the company.

This news increased the SIRI stock by a little over 2% today. SiriusXM wants to be leaner and meaner to make more money.

About SiriusXM

SiriusXM Holdings Inc. is a broadcasting company based in Midtown Manhattan, New York City, in the United States. It provides satellite radio and online radio services operating primarily across the country. The company was formed by the 2008 merger of two satellite radio giants: 

  • Sirius Satellite Radio
  • XM Satellite Radio

Later, both were then combined into SiriusXM Radio. Additionally, SiriusXM has a 70% equity interest in Sirius XM Canada. It is an affiliate company that provides Sirius and XM services in Canada.

History Of SiriusXM

Early Days of Sirius Satellite Radio:

  • Martine Rothblatt founded Satellite CD Radio in Washington, D.C., in 1990.
  • The company was the first to petition the FCC to assign unused frequencies for satellite radio broadcasts.
  • This move sparked controversy among owners of terrestrial radio stations.
  • In 2002, Sirius Satellite Radio was officially launched with Martine Rothblatt as the Chairman of the Board and co-founders David Margolese (CEO) and Robert Briskman (President and COO).

The Merger and Beyond:

  • On July 29, 2008, the U.S. Federal Communications Commission (FCC) gave the thumbs up for joining XM Satellite Radio and Sirius Satellite Radio, Inc.
  • The merger created a company with 18.5 million subscribers valued at US$3.3 billion (excluding debt).
  • Despite opposition from those concerned about a monopoly, Sirius and XM argued that the merger was necessary for satellite radio’s survival.
  • In 2018, SiriusXM acquired the streaming music service Pandora, solidifying its position as North America’s largest audio entertainment company.
  • As of July 2022, SiriusXM boasts approximately 34 million subscribers.

Why Is SiriusXM Laying Off?

SiriusXM is laying off employees because they’re facing challenges. Let’s talk about why they’re doing this:

  • People’s favourite ways of enjoying music and shows have significantly changed in the last ten years. Apps that stream music, podcasts, and playlists personalized for each person have become popular. Now, they’ve shaken up the way traditional radio works. SiriusXM, which used to be the leading choice for satellite radio, now has tough competition from Spotify, Apple Music, and other digital services. The number of people paying for SiriusXM has gone down. This makes them rethink their strategies.
  • Running a satellite radio network is a big job and costs money. Taking care of satellites and ground equipment and paying for the rights to use certain content is expensive. SiriusXM has also spent money on unique content, like channels hosted by famous people and live events. Balancing these costs while making sure they make a profit is tricky.
  • The launch of SiriusXM’s new streaming app in December 2023 was a big deal. The app promised to be faster, give better recommendations, and improve the whole experience for users. But the streaming world is crowded, with big players like Spotify and Pandora. SiriusXM has to convince people to pay for their premium service when there are free options.

But it’s not all bad news for SiriusXM:

  • SiriusXM bought Pandora in 2018. Then, it expanded what it offered beyond satellite radio. Pandora has a vast collection of music and personalized playlists that go well with what SiriusXM offers. If they combine these two platforms, it could create a smooth and enjoyable experience for users.
  • SiriusXM has some exceptional content that you can’t find anywhere else. From Howard Stern’s unique interviews to live sports broadcasts, they have made a name for themselves. By using these particular things, SiriusXM can keep the people they have and bring in new ones who want something different.
  • Even though streaming services let you listen to what you want whenever you want, live radio still has charm. SiriusXM covers many topics, from news and politics to funny shows and niche music styles. The excitement of listening to things in real-time, especially during significant events, makes SiriusXM stand out.

Is SiriusXM Worth It?

SiriusXM is a particular radio you can pay for, but it has pros and cons. Let’s talk about them: 

SiriusXM Pros:

  • Many Different Shows: SiriusXM has many channels with different things like music, talk shows, sports, news, and funny stuff. If you like having lots of choices, it’s good for you. 
  • Exclusive Shows: They have shows you can’t find anywhere else, like Howard Stern’s and live concerts. If you like specific hosts or artists, that’s cool. 
  • No Ads: Regular radio has ads, but SiriusXM doesn’t. Your favourite music won’t be interrupted by annoying commercials. 
  • Works Everywhere: SiriusXM still works even if you’re driving far or in places with no regular radio. It will continue in the middle of your favourite shows. 
  • Personalized Recommendations: Their app gives you suggestions based on what you like to listen to. 

SiriusXM Cons:

  • You Have to Pay: It’s not free. You need to pay every month. Think about if what you get is worth the money. 
  • Other Cheaper Options: Other services like Spotify and Apple Music have similar things for less money. If you already use them, you don’t need SiriusXM. 
  • Needs Internet: While regular radio always works, SiriusXM streaming needs good internet. It might not be great if you’re in places with lousy internetbetter. 
  • No Free Version: Some other services have free versions, but SiriusXM doesn’t. You either pay, or you don’t get it. 

Why Should You Get It?

  • If You Love Music: If you really like music and want special channels and live shows, SiriusXM might be good. 
  • If You’re in the Car a Lot: If you spend a long time in your car, this radio can be a good friend for your trips. 
  • If You Like Specific Things: They have channels for particular interests. If you like those things, it’s worth trying. It’s up to you! 

SiriusXM could be a good choice if you want unique stuff, good coverage, and a radio made just for you. Otherwise, you can check out other options and see what you like.

Looking Ahead

SiriusXM is making changes to stay strong. They want to do three main things:

  • Be Creative: Keep making new and better technology and shows.
  • Keep Listeners: Take care of the people who already like SiriusXM and get more interested.
  • Be Ready for Anything: Stay flexible in a fast-changing industry.

Things are shifting in the world of audio entertainment, but SiriusXM has been around for a while, and people know about it. We hope they can turn challenges into chances and keep giving us great audio experiences in the future.

SiriusXM’s Exciting Updates: What’s New?

The boss of SiriusXM, Jennifer Witz, is excited about the launch of their new streaming experience. She says it’s a big moment for the company, and they’re just starting. They’ve also revealed a new logo and mascot named Stella.

The new SiriusXM app will make it easier for people to listen to what they like. It has incredible features like personalized sections for music, talk, sports and customized pages. You can also learn more about your favourite teams, shows, and artists and easily search for your desired information.

They’re changing how you listen, like improving the media player and letting you save your favourite stuff in one place. New subscribers can also pick what they love when they sign up.

SiriusXM is adding new channels and shows, like a channel from Kelly Clarkson and another curated by Ashley Flowers, the host of Crime Junkie. They are also introducing a channel from John Mayer and a show from James Corden. They’re launching a new medium for Dolly Parton’s upcoming album and more tracks by Smokey Robinson and Shaggy.

The company is also partnering with Audible and expanding its partnership with Polestar. Next year, they plan to be available in select Hilton hotels so guests can control their in-room entertainment.

In short, SiriusXM is making their app better with more options for what you like. They’re also adding some channels and teaming up with other companies.

Final Thoughts

In summary, layoffs mean some people lose their jobs at Sirius XM. The company did this to be more efficient and make more profit. This is happening often in the tech world, where companies are trying to improve things. The SIRI stock went up a bit because of this news. About 170 workers were impacted by this round of layoff. People use SiriusXM to listen to different shows, music, and more. The company faced challenges with fewer people choosing to pay for their service and other changes in how people listen to things. SiriusXM is trying to improve its app and has unique plans for the future. Even though they had to do layoffs, they hope these changes will help them and those who love their shows and music.