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Sonos Lays Off 200 Employees After App Failure

Business Success 101

1. Force an App Update your workers warned you about.
2. Users complain
3. The Brand gets a hit due to shortsighted decisions.
4. Leave the company with a golden parachute
5. Lay Off workers, so you can have a positive revenue for your shareholders.
 
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I don't necessarily think Apple should buy them, but it'd be terrible IMO if Amazon or Google do. They'll immediately start orphaning all the Apple related features like AirPlay, jack the software up with Alexa/Gemini/etc. and drastically increase the amount of customer data they collect/sell.
 
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They were (are) expensive, but back in the day, when they worked properly, it was well worth the money. Good sound, easy interface, easy to add music sources, RELIABLE. Now, mine is glitchy and exasperating.
 
sloheim said:
The CEO didn't create the failed app. Those who are putting blame on him need to step back.

That being said, I hope the ones laid off weren't the developers. They rarely make any design decisions... they're just implementing the designs of the project managers. Thats likely the level where the whole process fell apart.. as usual... middle management.
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In this case, he absolutely did. They knew that the software wasn't ready, but the headphone release required it. He made the decision that it would be better for the company to release the unfinished software rather than delay the headphone introduction. 100% on him and any of the marketing and sales execs who advised him to do so. The board should have demanded his resignation immediately.
 
I have thousands wrapped up in Sonos products which makes it hard for me to justify switching. I believe their products have become too expensive without a compelling enough reason to promote their ecosystem. A $200-$400 streaming box makes no sense. Why can't the Sonos Ace join the Sonos system like any other Sonos speaker? A decade ago you might be able to justify the boutique product niche but there are other options today.
 
Anyone know how many people are (were) employed by Sonos?
What percentage of their workforce is 200 people?
 
Not sure why it keeps getting reported that it's the app. It's the market. Sonos is expensive. I have a few devices and the app is not a big deal. Most of myfriends with Sonos didn't even know the app was changed. I'm not saying the app doesn't have issues. But, blaming their sales just not that is probably not correct.

The issue is that it's an expensive luxury and people don't replace this gear often. Most people are not that discerning with audio and just buy the cheap Amazon junk. I think the cheapest Sonos bar is still $179 US. You can get a full cheap surround for that on Amazon. I know. Not as good. But, that is market right now.


Layoffs are what everyone is doing right now. He mentioned too many layers in the business. Basically bloat or they simply we do more with less people. But, they also have lower revenue. And, the layers excuse helps cover the gap.
 
As an owner of 3 rooms of Sonos gear in my house, I'm pulling for Sonos to get back on track. I still think they make excellent hardware that I enjoy daily. The app blowback is understandable but I personally had no issues at all and I've reconfigured as well as added new hardware with the new app. I'm certainly following the current issues but I still wouldn't hesitate to buy new Sonos products if I like them.

Now, I WOULD be quite disappointed if they went out of business but I knew what I was getting into when I purchased their products. So far, totally worth it even though they are relatively expensive.
 
tranceme said:
Not sure why it keeps getting reported that it's the app. It's the market. Sonos is expensive. I have a few devices and the app is not a big deal. Most of myfriends with Sonos didn't even know the app was changed. I'm not saying the app doesn't have issues. But, blaming their sales just not that is probably not correct.

The issue is that it's an expensive luxury and people don't replace this gear often. Most people are not that discerning with audio and just buy the cheap Amazon junk. I think the cheapest Sonos bar is still $179 US. You can get a full cheap surround for that on Amazon. I know. Not as good. But, that is market right now.


Layoffs are what everyone is doing right now. He mentioned too many layers in the business. Basically bloat or they simply we do more with less people. But, they also have lower revenue. And, the layers excuse helps cover the gap.
Click to expand...
If you have Sonos and don't know the app changed, then you just don't use the app. I mean, forget the bugs (which never actually bothered me), but the new UI is atrocious.
 
sloheim said:
The CEO didn't create the failed app. Those who are putting blame on him need to step back.

That being said, I hope the ones laid off weren't the developers. They rarely make any design decisions... they're just implementing the designs of the project managers. Thats likely the level where the whole process fell apart.. as usual... middle management.
Click to expand...
Step back? Doesn't a CEO claim all the successes?

If a CEO isn't responsible for failures, they shouldn't be rewarded (5.1 million compensation) for successes.
 
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I've been a user of Sonos for the last 10 years, and I still have a considerable number of their devices at home. It al started quite well, with the expectation that it would improve over time.

For a period of years, I was a champion for them recommending their products to everyone. But I got fed up in the last couple of years. In mu opinion, the company has been in a clear declining and reaching their lowest point last year with the "new app".

Honestly, I'm not optimistic about them. At this point, they have two options: 1) to be acquired or 2) go into bankruptcy. Thinning the organization means they also have financie issues and they might be preparing for an acquisition.

I wish Sonos all the best, but I won't recommend their products to anyone.
 
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