LiveOne announced a new cost‑cut program that has already generated more than $5 million in savings since December, driven by the deployment of Claude and other proprietary AI tools across its music channel curation, marketing optimization, and customer support functions in the Slacker, PodcastOne, and Media Group segments.
The company’s earlier round of cost cuts reduced headcount from 350 to 84 employees and cut operating expenses from $22 million to $6 million, a 52% year‑over‑year decline that has helped lower the company’s operating leverage and improve its balance sheet.
By automating routine tasks with AI, LiveOne is streamlining operations and reducing labor costs, while also improving the efficiency of its content recommendation and marketing workflows.
The initiative is part of a broader effort to eliminate roughly $14 million in liabilities, address a working‑capital deficiency, and strengthen liquidity, thereby mitigating the company’s ongoing going‑concern warning.
LiveOne’s partnership with Tesla is also a key element of the turnaround, as the company works to convert subsidized Tesla driver subscriptions into paid users and expand its B2B relationships.
Financially, the company reported Q3 FY2025 revenue of $20.3 million and a net loss of $4.11 million; PodcastOne generated $15.9 million of that revenue while Slacker’s contribution declined, underscoring the importance of the cost‑cutting measures in extending the firm’s runway.
Management said, "We are taking decisive actions to streamline our cost structure and materially strengthen our balance sheet while leveraging AI to operate more efficiently across the platform."
The announcement was met with a muted market reaction, as investors focus on the company’s liquidity improvements and the effectiveness of its AI‑driven cost controls.
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