Sonos to Lay Off 130 Employees Amid Financial Challenges
The move comes as Sonos faces ongoing challenges in the market. The news had an immediate impact on Sonos’ shares, which experienced a nearly 1% decline in premarket trading.
Sonos CEO, Patrick Spence, addressed the difficult decision, stating, “In the face of continued headwinds, we have had to make some hard choices, including eliminating some positions and reevaluating program spend.”
The reduction in workforce will affect Sonos’ overall headcount, which stood at 1,844 employees as of October 2022, according to the company’s previous disclosure.
In addition to the layoffs, Sonos anticipates incurring restructuring costs ranging from $11 million to $14 million. These costs include severance packages for affected employees, as well as expenses associated with streamlining the company’s real estate holdings.
Image: Sonos Move 2 (full review here)
Sonos’ most recent earnings report for the period ended April 1, 2023, revealed a significant decrease in revenue compared to the previous year.
The company experienced a 23.9% decline, with total revenue amounting to $304.2 million.
It’s worth noting that Sonos had previously implemented cost-cutting measures in 2020, when it reduced its workforce by 12% in response to impact of the Covid-19 pandemic.