Sonos Considers Reintroducing Old App Amid Layoffs and Poor App Update Reception
ICARO Media Group
In a recent report, it has been claimed that Sonos executives are contemplating the return of the old app following significant layoffs at the company. Sonos confirmed on Wednesday that approximately 100 employees will be affected by the job cuts. This comes as Sonos faces the challenge of repairing the damage caused by its poorly received app update, which is expected to cost the company between $20 million and $30 million in the short term.
Sonos CEO Patrick Spence explained that the decision to lay off team members was a difficult but necessary measure to ensure continued investment in Sonos' product roadmap and secure the company's long-term success. As of October 2022, Sonos had a total of 1,844 employees, according to CNBC. Earlier in June 2023, Sonos also had to reduce its workforce by approximately 130 employees (7% of its staff) due to ongoing difficulties.
The recent layoffs come as Sonos grapples with the repercussions of its app update release in May. The update removed several key functions, such as sleep timers, access to local music libraries, and accessibility features. By July, Sonos CEO Patrick Spence issued an apology for the flawed app update and promised regular biweekly updates to rectify the issues. Sonos has been taking steps to address the negative feedback, including updating the app, enhancing customer support, and implementing measures to regain customer and partner trust through discounts and other initiatives.
The ramifications of the app update backlash have also impacted Sonos' financial outlook. The company is anticipating reduced revenue in its fiscal Q4 2024 as it delays the launch of two hardware products until the app fixes are completed. While Sonos has not explicitly confirmed the specifics, it is speculated that one of the delayed products may be the much-awaited Sonos Arc soundbar follow-up. Anonymous sources cited by The Verge suggest that the soundbar may be released in October 2024, which falls within Sonos' fiscal year 2025.
Despite the challenges, Sonos remains committed to app recovery and customer satisfaction. Sonos CEO Patrick Spence reassured stakeholders that the recent layoffs would not hinder the company's ability to deliver on its promises. However, in light of ongoing issues with the new app, The Verge reported that Sonos is considering the possibility of reintroducing the previous version of the app. It remains unclear whether both versions would be made available or if the new app would be temporarily withdrawn until necessary improvements are implemented.
The consequences of the botched app redesign are likely to impact Sonos' financial performance for the foreseeable future. Sonos executives have acknowledged that the app rollout contained unforeseen bugs that had gone undetected during testing. The rushed release of the app, which coincided with the launch of Sonos' Ace headphones in June, has left long-term customers experiencing device malfunctions and months of dissatisfaction with an unsatisfactory app.
As Sonos navigates the challenges stemming from the app update, the focus remains on addressing customer concerns and restoring trust in the company's products. Whether reintroducing the old app or resolving the issues with the current one, Sonos aims to rectify the situation and regain its footing in the market.