Sonos Layoffs: 6% of workforce cut amid app issues, delayed product launches

What’s happening at Sonos?

Sonos, the audio products company known for its smart speakers, has announced that it is laying off approximately 6% of its workforce, impacting over 100 employees.

This decision comes after the company faced significant challenges following a problematic redesign of its mobile app, which led to mounting customer complaints, lower-than-expected sales projections, and delays in new product launches.

Background and recent developments

• The layoffs were disclosed in a company filing on Wednesday, August 14, and were first reported by The Verge.
• Sonos has over 1,800 employees, according to its Wikipedia page, with around 70% based in the United States.
• The company’s mobile app redesign in May resulted in widespread customer dissatisfaction, as users reported issues with the app recognizing existing Sonos speakers and setting up new devices.

Company response

Sonos CEO Patrick Spence acknowledged the severity of the situation during a recent earnings call, stating, “It’s so painful to let customers down the way we have with our app. We needed the new app to set us up for the future. Far too many of our customers… are having an experience that is worse than what they previously had.”

• In response to these challenges, Sonos has revised its fourth-quarter sales projections downward and postponed the release of two major new products.
• The company plans to invest between $20 and $30 million to fix the app and improve customer support, aiming to regain customer trust.
• The layoffs will incur costs between $9 and $12 million, with $6 to $8 million allocated for severance packages and related benefits, most of which will impact the company’s current quarter.

Layoffs in Canada

It remains unclear exactly how many Sonos employees in Canada will lose their job as a result of this layoff.

Your rights

In Canada, non-unionized employees at Sonos are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This applies to individuals working in any capacity — full-time, part-time, hourly, or potentially even independent contractors — in Ontario, Alberta, and British Columbia.

Severance is the compensation provided to non-unionized workers in Canada by their employer when they are terminated without cause, and can be as much as 24 months’ pay, depending on a number of factors.

WATCH: Employment lawyer Lior Samfiru explains why you are still owed severance if you have been downsized on an episode of the Employment Law Show.

Severance offers and deadlines

Before accepting a severance offer, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

In addition to your salary, make sure to factor in any other elements of your compensation (i.e. bonuses, commission, etc.).

If your employer’s offer falls short of what our Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay. An employer’s deadline to sign back a severance offer is not legally enforceable or binding.

LEARN MORE
• Severance pay for provincially regulated employees
• Rights to severance during mass layoffs
• Severance entitlements in a recession

Major layoffs continue

The job cuts come amid a flurry of layoffs in 2024.

Big names, including Intuit, UiPath, Dyson, Vancity, Stifel, SAP Canada, Netflix, AmDocs, EXL Service, Best Buy, Relic Entertainment, Ubisoft, Intel, Amazon, and Telus, have pulled out the axe as they continue to navigate challenging economic conditions.

SEE ALSO
• Shell to lay off 20% of deals division, part of restructuring
• Walmart Canada cuts jobs amid restructuring, shift to Spark: Reports
• Where are layoffs happening in Canada?

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and should not be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.