Sonos has announced a major restructuring effort that will result in laying off approximately 200 employees, representing 12% of its total workforce. This marks the second round of layoffs in six months for the audio technology company.

Interim CEO Tom Conrad announced the changes in an internal letter, citing the need to flatten the organizational structure and improve decision-making efficiency. "We've become mired in too many layers that have made collaboration and decision-making harder than it needs to be," Conrad explained.

The restructuring comes amid ongoing challenges following a problematic app update in May 2023 that removed essential features and sparked significant customer backlash. This controversy led to:

• The departure of former CEO Patrick Spence in January 2024
• An earlier round of layoffs in August 2023, affecting 100 employees
• Continued customer dissatisfaction with missing app features
• Declining employee morale

Despite these challenges, Sonos is moving forward with plans to launch a new high-end streaming player, building on the success of its Arc Ultra soundbar from last year. However, the company's immediate focus remains on addressing the ongoing issues with its app and rebuilding customer trust.

The announcement precedes Sonos' first-quarter earnings report, suggesting potential financial challenges for the company as it works to recover from recent setbacks.

Photo Credit: Jako Janse van Rensburg

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