Sonos Cuts Nearly 100 Employees or 6% of Staff

BREAKING NEWS

Sonos logoSonos Inc. confirmed late yesterday that it has cut 6% of its staff, or 96 employees, just days before a highly anticipated public offering expected as early as next month. The cuts are said to have been across all department and at all levels.

See more on what we know about the Sonos staff cuts…



Although no public announcement went out that we’re aware of, the scrappy Santa Barbera Independent newspaper heard the rumors on the street yesterday and contacted the company to confirm the reports. Ultimately picked up by Bloomberg and others, the story is now out there.

These cuts are designed to boost profitability and are not uncommon in companies about to launch a public offering of their stock. This is referred to by many on Wall Street as “window dressing” to make the company look more attractive to potential stock investors.

Sonos has offices in the U.S., Chi na, Europe and Australia. There is no word about how many of those cuts were here in the U.S. as opposed to their foreign offices.

Photo of both finishes of Sonos One

Sonos recently announced the Sonos One, which is said to be selling well for the company

Sources are telling us that these cuts went all the way up in the company management and that there was no foreshadowing to their dealers. The cuts were surprise, one source telling us, “Nobody expected it, people were stunned…”



Sonos had filed confidentially recently (reported in April) for an IPO to take place some time this summer. According to the Bloomberg report, the company is targeting a market valuation of a substantial $2.5 billion -to-$3 billion.

“Like any healthy business we occasionally make adjustments to the size and structure of our teams to stay nimble and align resources with market opportunities,” the company said in a statement. “Sonos is growing and profitable.”

We will continue to seek more details and update this report later if successful.

See more on Sonos by visiting: www.sonos.com.


About Ted

A sales and marketing specialist - primarily in the technology industry - I've experienced a sort of "circle of life" in business. I've been a mass merchant retailer, a specialty retailer, a specialty manufacturer, a large volume manufacturer, a distributor, and even represented sales representatives. Now the owner of a marketing company that works with a variety of businesses on improving their strategic marketing and business development - I analyze issues from all angles to develop holistic solutions.

Comments

Sonos Cuts Nearly 100 Employees or 6% of Staff — 7 Comments

  1. Wall Street always puts a spin on the bad news. Especially if they want people to invest in it. I remember the Wall Street Journal touting how wonderful Microsoft Windows Vista was. And we all know where that went. You have to watch everything WSJ reports on. It’s not always in your best interest and “window dressing” or not, this is never a good sign.

    • Good point. However, I was not referring to the Wall Street Journal when I talked about the concept of window dressing. I was referring to the more encompassing, all-inclusive financial community centered around Wall Street in New York City. It is a common practice to make a company look leaner and meaner and more profitable for a launch of the sale of their stock on the exchanges in Wall Street.

      As the company is in the middle of a confidential launch, they probably got some feedback questioning their headcount vs. revenues or earnings. I’ve seen it before…

      Thanks for your comment…

      Ted

  2. The entire space is under pressure. Very big and powerful players well down the line with voice recognition technology. The IPO will put big time pressure to perform on Sonos. We will know soon enough if they are indeed growing and profitable as stated. I think they are scrambling. Amazon, for example, is outperforming Sonos…and they have been in the space for a much shorter time period.

  3. I think Sonos, lost a little of what made Sonos desirable in the first place. Originally acknowledged as a Bose killer now like Bose have not progressed at the pace of the competition. The specialist retailers that help make Sonos great are the very same people now disallusioned by the lack of development support and the support to the specialist model. This creates the opportunity for Roon, Bluesound, Heos and others to fill the vacuum. The internet is a powerful tool, the benefit of a professional demonstration is significantly more powerful.

  4. Sonos is kind of in an interesting space, providing “lifestyle” audio products more than actual high fidelity products.

    Earlier comments comparing them to Bose are quite apropos, but there’s not really a lot of room for them to expand and I think most people who want a remote speaker either have one or have gone for an Alexa or HomePod.

    People who don’t want speakers are sticking with earbuds, and people with good stereo systems would never consider Sonos.

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