The smart speaker brand revealed in an SEC filing that it is also planning to shrink its “real estate footprint” and rethink spending on certain programs.The move will cost the company approximately $11 million to $14 million, in which up to $11 million will be linked to severance and benefits.
“Decisions regarding the elimination of positions are subject to local law and consultation requirements in certain countries. The foregoing actions were committed to on June 13, 2023 and reflect the Company’s commitment to rightsize its cost base while still investing in its product roadmap to drive future growth,” it said in the filing.Sonos expects to incur substantially all of the restructuring and related charges in the third quarter of fiscal 2023. The company reported having 1,844 employees as of last October, according to a report by The Verge.
Why Sonos is cutting jobs
“We have acknowledged that if we started to deviate from our performance expectations, we would take action to adapt and protect profitability while still investing in our exciting product roadmap to drive future growth,” Sonos CEO Patrick Spence was quoted as saying.
“In the face of continued headwinds, we have had to make some hard choices, including eliminating some positions and reevaluating program spend,” Spence added.
The CEO also said that the company’s top priority at this time is to provide the “departing teammates a respectful and compassionate transition and have focused on providing resources to support our employees financially, mentally, and professionally as they navigate what comes next.”
Furthermore, the company has reportedly witnessed a noticeable slowdown in consumer demand for Sonos speakers and home theatre products.
Last job cuts at Sonos
Sonos last made significant job cuts in mid-2020, when the company cut 12% of employees globally due to Covid-19 pandemic. The company also shut its four-year-old New York City retail store and several; company executives also took pay cuts.
Sonos operates 10 offices globally, with offices in Santa Barbara (where it’s headquartered), Boston, Seattle and San Francisco.
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