Sonos has announced the dismissal of 100 employees, occurring 14 months after it had previously scaled back its workforce of 1,800 by seven individuals. TechCrunch received confirmation of this development from the company, following a preliminary report provided by The Verge.
“It was a tough call to part ways with roughly 100 of our colleagues, which accounts for 6% of our workforce. This step, challenging as it was, had to be taken to ensure our ability to keep investing in the development of Sonos’ product offerings while positioning the company for a prosperous future,” stated CEO Patrick Spence in comments given to TechCrunch.
“Our undiminished dedication to revitalizing the app and ensuring customer satisfaction remains our cornerstone. We are optimistic that the decisions made today will not hinder our capacity to fulfill this commitment,” Spence further remarked. “Currently, our attention is on the employees we’re parting with, ensuring they receive the necessary support during this timeframe.”
In a recent earnings discussion, Spence mentioned persistent complications with the Sonos mobile application. He informed the investors about the anticipated costs for remedying the situation, estimating it to be between $20 million and $30 million, which includes endeavors to re-engage users.
“We’ve pinpointed the primary glitches, devised a remediation plan, and are honing our procedures and team configurations to make sure we accomplish our detailed strategy,” he elucidated during the discussion.
The revised version of the app has notably troubled the company, prompting Spence to issue a public apology to customers in May, expressing regret for the mismanagement of the issue.
“Every member of our team at Sonos feels deeply sorry for not meeting your expectations, and I want to reaffirm that rectifying the app for all our customers and partners remains our top concern,” he assured. Additionally, the letter detailed a schedule for implementing the necessary fixes, extending into October of the present year.
Compiled by Techarena.au.
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