On Monday, SiriusXM announced that it will slash its workforce by several hundred.

According to a message from CEO Jennifer Witz to employees that was posted on the website of company, 475 employees will lose their jobs as a result of the reduction in headcount. The reductions affect nearly every department and amount to 8% of the company’s total workforce.

At the end of 2022, SiriusXM’s most recent annual report stated that the company employed more than 5,800 individuals. The “overwhelming majority” were full-time, it stated.

“The investments we are making in the business this year, coupled with today’s uncertain economic environment, require us to think differently about how our organization is structured,” Witz said.

The memo from the CEO of SiriusXM states that employees who are laid off will be provided with outplacement services, severance pay, transitional health insurance benefits, continuation of the employee advocacy program, and benefits.

Witz stated that layoffs are necessary in order to maintain a “sustainably profitable company.” Numerous companies in industries ranging from technology and finance to consumer goods and media have indicated that in 2023 they will reduce the number of employees they employ, including SiriusXM.

According to the CEO, SiriusXM had implemented measures such as “reducing content and marketing spend, decreasing our real estate footprint, and most recently, implementing tighter restrictions in our Travel and Entertainment policy.”

“Today is one of the most difficult days we’ve had to face as a team, and these changes impact each of us deeply,” Witz wrote. “However, it is my belief that these tough decisions were necessary as we look to capture the opportunity behind us.”

In February, SiriusXM reported that in the fourth quarter, it made $365 million in net income—an increase of approximately 14.8% year-over-year—and $2.28 billion in revenue—a slight increase from the same three-month period last year.

The company claims that its full-year revenue and profit totaled $9 billion and $1.213 billion, respectively. While the profit for the year was down 7.7%, that revenue figure was higher than the $8.7 billion from the previous year.

Topics #SiriusXM