Sonos Faces Challenges as Company Reduces Workforce

Thursday, 15 August 2024, 16:08

Sonos has confirmed the layoff of approximately 100 employees, representing 6% of its workforce, in an effort to manage financial losses associated with a poorly received app update. The costly update is expected to set the company back by $20 million to $30 million. CEO Patrick Spence emphasized that the decision aims to refocus investment on Sonos' product roadmap to ensure long-term success. This move follows earlier layoffs in June 2023 and 2020, indicating ongoing challenges for the company.
Ars Technica
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.


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