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Sonos plans to cut 7% of its workforce

Published 06/14/2023, 09:08 AM
Updated 06/14/2023, 09:08 AM
Sonos (SONO) plans to cut 7% of its workforce

California-based audio products company Sonos Inc (NASDAQ:SONO) plans to reduce employees by about 7%, according to a filing with the U.S. Securities and Exchange Commission. Sonos will also reduce its real estate footprint and reevaluate certain spending.

Sonos said the move reflected the company’s “commitment to rightsize its cost base while still investing in its product roadmap to drive future growth.”

The Company estimates that it will incur approximately $11 to $14 million of restructuring and related charges, of which $9 to $11M is related to employee severance and benefits costs.

In May, Sonos reported second-quarter results and lowered its full-year guidance to $1.625B - $1.675B from $1.7B - $1.8B, a decline of 7% to 4% from fiscal 2022. The company flagged softening consumer demand and channel partner inventory tightening as the reason for the reduced guidance.

At the time, CEO Patrick Spence said he plans “swift action to reduce our operating expenses and protect our profitability.”

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