SiriusXM, the satellite radio giant, announced a fresh round of layoffs on Monday, March 10, just three months after pivoting away from its struggling streaming app to refocus on its core in-car satellite audience. The cuts, which primarily targeted the company’s product and technology group, are the latest in a series of workforce reductions as SiriusXM grapples with stalled subscriber growth and shifting market dynamics. A company spokesperson framed the layoffs as part of the strategic overhaul unveiled in December, though specifics on the number of affected employees remain undisclosed, according to a report from Billboard.
This marks the third time in three years that SiriusXM has trimmed its ranks. In February 2024, the company shed 3% of its workforce, following an 8% cut in March 2023. Those earlier layoffs were pitched as essential to bolster the platform and fund technological investments aimed at sparking growth. Yet, satellite subscription numbers have flatlined, and a push to lure new users with a budget-friendly streaming app fell flat, prompting the December pivot.
The latest layoffs coincide with a leadership shakeup. In December, SiriusXM tapped Wayne Thorsen, a former Google and Viacom executive, as COO to oversee product, technology, corporate strategy, and parts of the commercial business. His arrival followed the exit of Joseph Inzerillo, the former chief product and technology officer. Meanwhile, the company is betting on a new ad-supported, lower-cost satellite tier—soft-launched in 2024—to reel in subscribers. “It gives us a place where we can market to these individuals,” CFO Tom Barry explained during Tuesday’s Deutsche Bank Media, Internet & Telecom Conference. “We can bring them up to a higher price point as they engage more.” A full rollout is slated for 2025, though Barry cautioned it “could slip.”
Advertising, however, remains a sore spot. Barry noted a recent “drop-off” in ad revenue—particularly from consumer-packaged goods brands—over the past few weeks, tied to uncertainty over the Trump administration’s proposed tariffs on China, Mexico, and Canada. “We’re cautious about where the ad industry is going right now,” he admitted. The company’s financials reflect the strain: 2024 saw a 4% subscriber decline and a 3% revenue dip to $8.7 billion.
Looking ahead, SiriusXM expects more subscriber losses in 2025, projecting a drop of roughly 200,000 as it scales back streaming app marketing and tightens promotional terms. For a company once synonymous with in-car entertainment, the road to recovery hinges on whether its satellite-first strategy can tune out the noise of a challenging market.
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