Sonos, who has pioneered an affordable home speaker system, announced this week that it is cutting 200 jobs to rebuild following the mismanagement and economic losses that have rocked the Santa Barbara-based company. did.
The layoffs, which make up about 12% of Sonos’ workforce, come after months of trouble, including a disastrous reboot of the speaker company’s app last year.
“There’s no way to avoid the fact that this is a terrible outcome,” interim CEO Tom Conrad, a longtime board member, said in a statement posted on the company’s website.
Sonos, according to the announcement, does not surround the various products it sells to help make decisions and collaborate, but rather hardware, software, design, quality and capabilities (hardware, software, design, quality and operation). Based on the restructuring of a small team.
“To be smaller and more focused, you need to do a better job of prioritizing your work. I’ve been running too many projects under a cloud of half-commitment, too many more. This too, too, too, too, of the half-commitment. I’m going to fix it,” Conrad wrote.
The company’s troubles were promoted by the release of the new Sonos Controller app last May, customers said, as it was barely available.
The speaker manufacturer said it would spend $20 million to $30 million to roll the app again and provide better customer service, but ended on September 30 last year despite the release of a new product It took a major blow to revenues in the fiscal year.
In a revenue report released Thursday morning, Sonos said revenue for the last three months of 2024 had fallen to around $551,000, down about 10% from the same period in 2023. Operating profit fell almost 40% over the same period.
The company’s shares were trading at around $15 late Thursday afternoon. This is an increase of more than 6% per day, but has fallen nearly 8% over the past 12 months.
News of the cut at Sonos has announced that Workday, a California-based HR management software company, will be hiring about 8.5% of its workforce, or about 1,750 people. Workday plans to refocus on artificial intelligence and platform development for the new fiscal year, CEO Carl Eschenbach said in a memo sent to employees Wednesday morning.
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