SONOS announced a staff reduction in the framework of the strategy to get out of the crisis that occurred after the failure of the application. According to The Verge, about 200 employees will lose work, which is the most significant dismissal lately. Tom Conrad, temporarily acting general director, called this decision for a forced step to save the company.
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The situation in SONOS continues to deteriorate, and the new stage of reductions looks like an attempt to reorganize the company’s work on the eve of the report on quarterly results, which is scheduled for Thursday. This is not the first case of dismissal in SONOS – in August last year, 100 people lost their jobs. However, the current wave is much larger and emphasizes serious problems within the company.
In his letter published on the official website, Konrad noted: “We were immersed in too complex processes that make it difficult to cooperate and make decisions. Therefore, today we are moving to more compact and narrowly focused teams. ”
Recall that SONOS was put before the fact of falling demand for its products and the loss of customer confidence after last year’s scandal with the application. The poor -quality update, released in May, turned out to be raw and deprived of many necessary functions, which before that worked properly. Errors in the management and organization of the working process led to the resignation of the former general director Patrick Spence, and now the company is trying to correct the miscalculations.
The new head of SONOS promised to continue to work on improving the mobile application, however, dismissal can negatively affect the moral condition of employees who are already working to correct the errors of the previous leadership. “Being less and more focused, we must learn to better prioritize. Recently, too many projects have been launched with insufficient return. We will fix this too, ”Conrad emphasized in his appeal.
Among the key changes, the structure reorganization will occur. Two groups will be created for hardware, software, design, quality and operational activities, and units tied to specific categories of products will be abolished. According to the leadership, this should improve the overall coordination and efficiency of work.