The full extent of Sonos’s problems is now being revealed, with the sacking over 100 executives overnight.
Under siege CEO Patrick Spence appears to have targeted the Companies marketing and communications product engineering, platform and infrastructure, and software divisions that have been involved in the disastrous new app.
These latest cuts come as Sonos continues to grapple with the fallout from its disastrous mobile app redesign.
On Sonos’ earnings call last week, Spence admitted that two key new product launches scheduled for later this year have been delayed because of the app debacle.
Insiders are suggesting that a lot of the problems were caused by work from home policies with management not “effectively communicating with each other”.
the Company has recently resorted to heavy discounting in an effort to lift flagging sales.
Sonos shares fell another 4.43% overnight on the news, after falling 19.3% this month and over 40% during the past six months as the Company desperately tried to hose down problems that has seen consumers threatening a class action against the US sound Company.
This time last year the Company, that back in 2022,had around 1,600 employees sacked 7% of workers, now they are laying off another 6% with customers dumping their Sonos sound systems for new ones from the likes of Denon, Apple, JBL and Bose.
According to the Verge the business is closing customer support offices in some Countries, including one in Amsterdam that serviced Europe, questions are now being asked about the Companies Melbourne based Australian operation after the business appointed Westan as a distributor for their specialist audio and custom install channels last year.
Spence in announcing the layoffs said, “We made the difficult decision to say goodbye to approximately 100 team members representing 6 percent of the company,” Spence said.
“This action was a difficult, but necessary, measure to ensure continued, meaningful investment in Sonos’ product roadmap while setting Sonos up for long term success.”
Spence whose role as CEO is under question, added “our continued commitment to the app recovery and delighting our customers remains our priority and we are confident that today’s actions will not impact our ability to deliver on that promise.”
The business who appears to be clueless as to how to fix their app problem has put board member Thomas Conrad in charge of overseeing improvements and ensuring that the effort remains on track.
Spence also said that chief innovation officer Nick Millington, who architected the original Sonos system experience, has been asked “to do whatever it takes to address the issues with our new app.”
More to follow
