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Sonos Inc. has said it’s cutting around 12% of its staff headcount in a move to make its product teams “flatter, smaller and more focused.”
Audio giant Sonos, which specializes in high-end speakers and other equipment made the announcement today on a call attended by all employees.
As reported by Bloomberg, the Santa Barbara, California-based firm has intimated that the 200 employees impacted will be informed immediately.
News of the staff cuts comes just a matter of weeks after Sonos CEO Patrick Spence was confirmed to be leaving the company, due to the aftermath of a failed mobile app relaunch.
Sonos’ reputation and standing have been dented in recent times due to continued issues with the app. Customer satisfaction and sales have also been impacted, including during new product launches, as it strives to recover.
🚨 LAYOFF ALERT – California 🇺🇸
Sonos will layoff 200 employees and those affected will receive a severance package based on the period spent with Sonos pic.twitter.com/1ap8VBRFfK
— The Layoff Tracker 🚨 (@WhatLayoff) February 6, 2025
We will fix this, insists incumbent CEO
Interim CEO Tom Conrad, Spence’s successor, said in a memo to staff that Sonos has “become mired in too many layers that have made collaboration and decision-making harder than it needs to be.”
As a consequence, the company is pushing ahead with restructuring resulting in the loss of 200 positions, with major changes to the product development department.
“We are reorganizing our product organization into functional groups for hardware, software, design, quality and operations, and away from dedicated business units devoted to individual product categories,” he continued.
“With this simpler organization in place, cross-functional project teams will come together to improve our core experience and deliver new products. Lately, we’ve let too many projects run under a cloud of half-commitment.”
“We’re going to fix this too,” Conrad added.
Sonos is due to post its first-quarter earnings on Thursday, against a backdrop of a 9.9% slump in share price over the past 12 months.
It has informed the Securities and Exchange Commission that the job losses will result in $15 million to $18 million of restructuring and related charges, mostly in the current financial period.
Image credit: Via Midjourney
