Washington - Despite assurances from senior executives, concern is growing among employees of XM Satellite Radio about possible job cuts -- and the role of the D.C. headquarters -- should the company's proposed $13 billion merger with New York-based rival Sirius Satellite Radio pass federal scrutiny, The Washington Post reported on Monday.

"There are definitely people who are nervous," programming director Billy Zero told The Washington Post. "Without a doubt, there's going to be some overlap."

The Post reported that Mel Karmazin, who would be CEO of the merged company, indicated in an interview that "XM's headquarters building is a valuable asset and that he might even expand its workforce."

In order to gain cost savings from the merger, duplicated jobs of on-air talent and behind-the-scenes employees will likely be eliminated, or possibly moved to New York.

"When (the deal) closes, the plan is to take advantage of great talent that exists in both companies," XM CEO Hugh Panero told The Post. "Clearly, there will be redundancies. But these are growth companies."

The deal must first gain approval from both the Justice Department and Federal Communications Commission, which currently has a rule in place prohibiting a single company from owning two satellite radio licenses.

Related Links:
http://tinyurl.com/2bjjlw (Washington Post)

http://www.xmradio.com