Sonos Layoffs, Plans to Cut 7% of Workforce

Sonos said it would layoff 7% of its workforce, around 130 employees, in an SEC filing Wednesday (14th June 2023).

Sonos Layoffs, Plans to Cut 7% of Workforce

Wireless speaker company Sonos said in a Wednesday (14th June 2023) filing that it would lay off about 7% of its workforce, or roughly 130 employees.

Shares of Sonos were down nearly 1% in premarket trading.

“In the face of continued headwinds we have had to make some hard choices, including eliminating some positions and reevaluating program spend,” Sonos CEO Patrick Spence said.

The company employed 1,844 people as of October 2022, when it last disclosed its head count. Sonos expects to incur $11 million to $14 million in restructuring costs, which include the cost of severance but also expenses associated with streamlining its real estate portfolio and expenses.

Sonos cut its guidance in its most recent earnings report for the period ended April 1, 2023. Revenue decreased 23.9% year over year, to $304.2 million.

The company had previously cut head count by 12% in 2020, in response to the rapidly unfolding Covid pandemic.

How Else Is Sonos Cutting Costs?

Obviously, layoffs are one of the more effective, albeit unfortunate, ways to cut costs at a business. However, Sonos is planning on doing more than that to shore up finances during the recession.

According to the SEC filing, Sonos will also be “reducing its real estate footprint and re-evaluating certain program spend.” What this means exactly is unclear, but it's safe to say the company is substantially tightening its belt in 2023.

While the overall plan for Sonos is to cut costs in the long run, the SEC filing notes that the company “will incur approximately $11 to $14 million of restructuring and related charges, of which $9 to $11 million is related to employee severance and benefits costs.”

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