Sonos Faces Challenges as Company Reduces Workforce
Sonos Layoffs: Key Details
In a significant organizational shift, Sonos is parting ways with approximately 100 team members, which constitutes 6 percent of its workforce. The announcement was officially made on Wednesday, as the company grapples with the financial fallout stemming from its latest app update.
Financial Repercussions of the App Update
Sonos anticipates incurring expenses ranging from $20 million to $30 million to rectify the issues caused by the update. This app was met with negative feedback from users and has impacted the company’s operational focus.
CEO's Statement on Strategy
In a statement to The Verge, Sonos CEO Patrick Spence shared his insights:
- “We made the difficult decision to say goodbye to approximately 100 team members.”
- “This action was a difficult, but necessary, measure.”
- “Our goal is to ensure continued, meaningful investment in Sonos’ product roadmap.”
Previous Layoffs and Future Outlook
Sonos has faced a history of workforce reduction, having laid off around 130 employees (or 7 percent) in June 2023, citing “continued headwinds”. Additionally, in 2020, the company underwent a major downsizing, reducing its employee count by 12 percent, approximately 174 workers.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.