Sonos Trims Workforce by 7% Amid Financial Headwinds

Sonos, the wireless speaker company, revealed plans to lay off approximately 7% of its workforce, equating to around 130 employees. The decision comes as the company faces ongoing financial challenges, with shares down nearly 1% in premarket trading.

Sonos CEO, Patrick Spence, stated that the company had to make some tough decisions, including job cuts and a reevaluation of program spending, in response to the continued economic headwinds. As of October 2022, Sonos had a workforce of 1,844 employees.

The layoffs are expected to result in restructuring costs ranging from $11 million to $14 million. These costs encompass not only severance pay but also expenses related to streamlining the company’s real estate portfolio.

In its most recent earnings report for the period ending April 1, 2023, Sonos reduced its guidance following a 23.9% year-over-year decrease in revenue to $304.2 million. This is not the first time the company has had to reduce its workforce; in 2020, it cut its headcount by 12% in response to the Covid-19 pandemic.

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