Sonos Cuts 6% of Workforce 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.

Impact in Canada

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

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📞 Contact Samfiru Tumarkin LLP: 1-855-821-5900 or request a consultation online.

Our experienced employment lawyers in Ontario, Alberta, and British Columbia (BC) have helped tens of thousands of non-unionized individuals resolve their workplace issues, including wrongful dismissals.

If you’ve lost your job at Sonos for any reason, don’t panic. We can review your situation, assess your legal options, and help you secure the compensation you’re legally entitled to.

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