- Sirius XM Holdings (SIRI) announced that it would cut 8% of its workforce as it reorganizes its operations.
- In February, the company issued 2023 revenue and EBITDA guidance that came in below analysts' expectations.
- Shares of the satellite radio company gained 1% following the announcement but remain down 26% year to date.
Sirius XM Holdings (SIRI) announced that it was cutting jobs and reorganizing operations a month after it gave a weaker-than-expected full-year outlook.
CEO Jennifer Witz wrote in a letter to employees that the company would be eliminating 8% of its workforce, or 475 employees. She indicated that, despite previous efforts to reduce costs, the layoffs "were required in order for us to maintain a sustainably profitable company."
Witz explained that Sirius XM was "entering a new phase." She said that, following a review of the business, the company found that the investments it is making this year, coupled with an uncertain economic environment, required management to "think differently about how our organization is structured."
She added that the changes coming to the company will impact nearly every department and that the new operational design "will allow us to move faster and more effectively as we take on new challenges across our business."
Sirius reported last month that it expected 2023 revenue to be approximately $9 billion, the same as in 2022, and earnings before interest, taxes, depreciation, and amortization (EBITDA) of $2.7 billion. Both were short of analysts' estimates.
Shares of Sirius XM Holdings were up 1%. They have been trading near a more than six-year low and are down 26% so far this year.