Sonos triggers 7% layoffs while reducing its real estate portfolio

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Sonos is laying off seven percent of the workforce and reducing the real estate portfolio

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Credit: Toa Heftiba

Sonos has announced a 7% job cut at a tech company as part of the latest round of layoffs.

Sonos says it’s also committed to further reducing its real estate footprint and reassessing its programming spend. The layoffs and decisions about who is affected are subject to local laws and consultation requirements. Sonos is looking to right-size its cost base while investing in its product roadmap to drive future growth.

Sonos estimates that restructuring and related costs will be between $11 million and $14 million. About $9 million to $11 million of that is for employee severance and benefits. Most of those costs will be incurred in fiscal third quarter, according to the company’s SEC filing.

This affects 7% of the workforce, which corresponds to around 130 employees. “With continued headwinds, we’ve had to make some difficult decisions, including eliminating some positions and reassessing program spending,” Sonos CEO Patrick Spence told employees. Sonos employed around 1,844 people in October 2022. Earlier in 2020, the company reduced its headcount by 12% in response to the COVID-19 pandemic.

Sonos successfully filed a patent infringement lawsuit against Google, winning $32.5 million in the smart speaker patent litigation. That legal battle began in 2020 when Sonos accused Google of copying its technology after a partnership was formed between the two companies in 2013. In this case, Google had to change how some features of its own line of Nest smart speakers work and ads.

“This is a tight dispute over some very specific features that are not commonly used,” a Google spokesman, Peter Schottenfels, said in a statement on the ruling. “Of the six patents initially asserted by Sonos, only one was found to be infringing and the remainder were dismissed as invalid or not infringed. We have always evolved based on our ideas. We are considering our next steps.”