Sonos, a US wireless speaker manufacturer, announced further layoffs following a 7% layoff in June

Nov 16,2023

Following a 7% layoff in June, American wireless speaker manufacturer Sonos recently stated that it is laying off employees, which has also exacerbated the company's recent turmoil.

Maxime Bouvat Merlin, Chief Product Officer, announced the move in an email sent to employees on November 15th. He stated that affected employees would receive email notifications and the company would have a conversation with dismissed employees on November 16th, but did not specify the size or number of layoffs.

Due to a general slowdown in consumer technology spending, the company's sales decreased by 6% in the just ended fiscal year. Bouvat Merlin stated that the latest cuts are due to a "shift in product strategy" towards entering the headphone industry, rather than the previous cuts in operating expenses.

He stated that the restructuring of the company's product portfolio will begin in September, resulting in 200 employees obtaining new positions, teams, or leaders.

The company informed employees that a meeting will soon be held with the remaining employees to outline how the team will change.

Bouvat Merlin also revealed in the memo that the Sonos team is dedicated to the field of headphones. According to reports, the company has been committed to the research and development of headphones for over four years, but such products have not yet been announced.

The company also has a team focused on home products, portable speakers, and voice control.

Bouvat Merlin stated that new products codenamed Lasso, Pinewood, and Premier are currently under development.

The company expects sales of $1.6 billion to $1.7 billion in the 2024 fiscal year, which is lower than Wall Street's forecast.
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