Sonos CEO Confirms 100 Job Cuts

Sonos has confirmed the layoff of 100 employees, representing 6% of its workforce, just over a year after a previous reduction of 7% from its 1,800-strong team. The announcement was made to TechCrunch following an initial report by The Verge. CEO Patrick Spence described the decision as difficult yet necessary to ensure continued investment in the company's product roadmap and to secure long-term success. He emphasized the company's commitment to supporting departing employees during this transition. The layoffs come in the wake of ongoing challenges with Sonos' mobile app, which Spence addressed during a recent earnings call. He revealed that rectifying the app's issues could cost the company between $20 million and $30 million. Spence assured investors that the company has identified key bugs and is implementing a plan to resolve them, alongside improving processes and staffing to enhance execution. The app's redesign has faced significant criticism, prompting Spence to issue an open letter to customers in May, where he expressed regret over the situation. He acknowledged the disappointment felt by both employees and customers, reiterating that fixing the app remains the company's top priority. The letter included a timeline for expected fixes, extending into October 2023, as Sonos aims to restore customer confidence and satisfaction. As Sonos navigates these challenges, the focus remains on ensuring that the company can deliver on its promises while managing the impact of the layoffs on its workforce.