SiriusXM Plans $200M In Cost Cuts In Pullback From Streaming, “Doubling Down” On Core Auto Market; Stock Tumbles 10% On Revenue Outlook

deadline.com:

Satellite audio firm SiriusXM is aiming to trim costs by $200 million in 2025 as it shifts away from streaming and refocuses on its core automotive market.

The news, announced in a press release, follows efforts in 2023 and 2024 to achieve about $350 million in cost savings. Last February, as part of that austerity drive, the company laid off about 3% of its workforce.

Shares in SiriusXM tumbled 10% on the news, which included a revenue forecast of $8.5 billion for 2025, which is below the consensus among Wall Street analysts.

Strategically, SiriusXM said it is “doubling down” on vehicles, where 90% of its subscribers engage with its service. The company said it is “focusing its resources on increasing retention and capturing additional growth opportunities within this valuable segment that underpins its scaled subscriber base.