Sonos Announces Laying Off 7 Per Cent Of Its Employees

Sonos also expects to incur substantially all of the restructuring and related charges in the third quarter of fiscal 2023.

High-tech speaker and audio technology major Sonos has announced to lay off seven per cent of its workforce, which is roughly 130 employees in the wake of challenging economic conditions, the company said in a filing with the US Securities and Exchange Commission (SEC). The audio giant also said that it will reduce its real estate footprint in the coming months and re-evaluate certain programme expenditures, the media has reported.

Sonos has stated that it will incur about $11-$14 million of restructuring and related charges, of which $9-$11 million is related to employee severance and benefits costs. As of October 2022, the company employed 1,844 people, says a report by CNBC.

"Decisions regarding the elimination of positions are subject to local law and consultation requirements in certain countries. The company also committed to further reducing its real estate footprint and re-evaluating certain programme spend," Sonos said in a filing with the US Securities and Exchange Commission (SEC) on Wednesday.

The firm also expects to incur substantially all of the restructuring and related charges in the third quarter of fiscal 2023. In 2020, the company had reduced its headcount by 12 per cent in response to the rapidly spreading Coronavirus pandemic.

“We have acknowledged that if we started to deviate from our performance expectations, we would take action to adapt and protect profitability while still investing in our exciting product roadmap to drive future growth,” Sonos CEO Patrick Spence said in a statement, as reported by The Verge. 

Meanwhile, a court in the US has ordered Google to pay $32.5 million to Sonos, for infringing on the company's smart speaker patent. The verdict by a San Francisco jury found that Google's smart speakers and media players infringed on one of two Sonos patents, reports The Verge, citing the court filing. Jurors said that Google should pay $2.30 for each of the more than 14 million devices sold.