Sonos has announced a major restructuring effort that will result in approximately 200 employee layoffs, representing 12% of its total workforce. This marks the company's second round of layoffs in six months.

Interim CEO Tom Conrad revealed the changes in an internal letter to employees, citing the need to flatten organizational hierarchy and improve decision-making processes. "We've become mired in too many layers that have made collaboration and decision-making harder than it needs to be," Conrad stated.

The restructuring follows several challenging developments for Sonos:

• A problematic app update in May 2023 that removed crucial features and caused widespread customer dissatisfaction
• The departure of former CEO Patrick Spence in January 2024
• Previous layoffs of approximately 100 employees in August 2023
• Ongoing issues with the company's app functionality and reliability

Despite these challenges, Sonos continues development of new products, including an upcoming high-end streaming player intended to complement their successful Arc Ultra soundbar from last year.

The announcement comes just before Sonos' first-quarter earnings report, suggesting potential financial difficulties for the audio technology company. The timing of these layoffs and restructuring efforts indicates Sonos is taking aggressive steps to stabilize its business operations and restore customer confidence.

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