A recent filing with the U.S. Securities and Exchange Commission reports Sonos Inc. has plans to cut staff by around 7 percent. The California-based audio products company is striving to reevaluate and conscience overall spending in addition to cutting back on its real estate footprint.
The layoffs will include around 130 employees of Sonos’ 1,844 staffers. This is the first round of layoffs the company has announced since the start of the pandemic in 2020 when it eliminated 12 percent of employees.
Sonos CEO Patrick Spence said the company will take “swift action to reduce our operating expenses and protect our profitability” by tightening partner inventory while trying to drive up consumer demand.
“In the face of continued headwinds we have had to make some hard choices, including eliminating some positions and reevaluating program spend,” said Patrick Spence.
Back in May, Sonos’ second quarter reports showed the company decreased its “full-year guidance to $1.625 – $1.675 billion”, down from $1.7 – $1.8 billion, decreasing from 7 percent to 4 percent since 2022. Overall revenue declined by 23.9 percent year over year, ending the second quarter with $304.2 million.
Sources report the decision stems from the company’s “commitment to rightsize its cost base will still investing in its product roadmap to drive future growth.”
Sonos anticipates spending between $9 million to $11 million on employee severance packages and benefits costs. Overall, Sonos is expected to acquire an estimated $11 million to $14 million in restructuring and other related costs. The total number includes employee severance payouts.
Sonos develops and manufactures audio products to create a multi-room listening experience for music, radio, podcasts, and audiobooks. The company, founded in 2002 is one of the leading multi-room speakers wireless speakers systems and has been run by Patrick Spence since 2017.