Sonos, the US manufacturer of wireless speakers, has announced that it will lay off 200 employees as part of a restructuring. Interim CEO Tom Conrad shared this news in an e-mail to staff, stressing the need for the organisation to operate more efficiently. He noted that "we have become entangled in too many layers that have made collaboration and decision-making more difficult than necessary". The restructuring aims to make teams "flatter, smaller and more focused".
With its new soundbar Arc Ultra, which features what it says is groundbreaking Sound Motion™ technology, Sonos hopes for better times.
This announcement follows a tumultuous period for Sonos, which began with the launch of a new app in May 2024. However, the update, intended to improve the user experience, was plagued by bugs, performance issues and lack of essential features. This led to widespread customer dissatisfaction and a significant drop in the company's share price.
The problems with the app had far-reaching consequences. In August 2024, Sonos already implemented a round of layoffs in which 100 employees lost their jobs. In early 2025, CEO Patrick Spence resigned because of the ongoing problems and their impact on the company's reputation. Tom Conrad, previously at Pandora and Snapchat, took on the role of interim CEO.
Alongside the restructuring and layoffs, Sonos is developing new products to regain consumer trust. The company is working on a high-end streaming device, codenamed "Pinewood", to integrate various streaming services such as Netflix, Max and Disney Plus. This device is also expected to offer advanced connectivity options, including gigabit Ethernet and Wi-Fi 7.
Moreover, Sonos considered developing a MagSafe speaker for iPhones, aimed at Gen Z consumers. Although this project was eventually cancelled due to technical challenges and limited market interest, it shows Sonos' ongoing efforts to innovate and explore new markets.
Recent developments at Sonos highlight the challenges the company faces in a competitive market. With the announced restructuring and product innovations, Sonos hopes to strengthen its position and regain the trust of both consumers and investors.
More information:
Sonos
www.sonos.com