More and more tech companies have been making the decision to lay off portions of their workforces in 2023. That list includes Eventbrite (NYSE:EB) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) subsidiary Waymo.
Now, Sirius XM (NASDAQ:SIRI) has announced the elimination of 475 jobs, amounting to roughly 8% of its workforce. The satellite and internet radio broadcasting company disclosed this information today in an 8K filing with the U.S. Securities and Exchange Commission (SEC).
News of the Sirius XM layoffs hasn’t pushed SIRI stock down. On the contrary, it has been rising all day. However, this does raise some questions as to the company’s future and its plans for growth after a year spent mostly in decline.
Let’s dive deeper into this news and what investors should be expecting as Sirius XM works to usher in a turnaround in 2023.
A Closer Look at the Sirius XM Layoffs
As of this writing, SIRI stock is up 2% for the day and looks primed to rise even higher. That’s likely due to positive market momentum. Both the Nasdaq composite and the S&P 500 are in the green today and rising steadily, signaling a good day across varying sectors. But this doesn’t mean that the Sirius XM layoffs aren’t worth examining for investors curious about what they mean for the company and the broader industry.
When Sirius XM CEO Jennifer Witz addressed her company in an email, she stressed the layoffs are an important part of the company’s new growth strategy. As she 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. The decision to reduce our workforce was required in order for us to maintain a sustainably profitable company.”
This can be expected from a company that is still recovering from a difficult year. As Variety reports, the Sirius XM layoffs will impact almost every division across the company. That may be a troubling sign to some, but the company still boasts strong fundamentals. As InvestorPlace contributor Josh Enomoto reports, it maintains a high three-year revenue growth rate and a favorable net margin. The restructuring initiative may be exactly what the company needs to turn around and pull back into the green.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.