Patrick Spence, president and chief executive officer of Sonos Inc., speaks during a Bloomberg Technology Television interview in San Francisco, California, U.S., on Monday, Feb. 11, 2019.
David Paul Morris | Bloomberg | Getty Images
Shares were relatively flat in premarket trading.
“In the face of continued headwinds we have had to make some hard choices, including eliminating some positions and reevaluating program spend,” Sonos CEO Patrick Spence said.
The company employed 1,844 people as of October 2022, when Sonos last disclosed its headcount. The company expects to incur $11 million to $14 million in restructuring costs, which include the cost of severance but also expenses associated with streamlining its real estate portfolio and expenses.
The company cut its guidance in its most recent earnings report for the period ending on April 1, 2023. Quarterly gross profit was also down compared to the year-ago period, from $179 million to $131 million. Revenue decreased 23.9% year-over-year, to $304.2 million.
The company had previously cut headcount by 12% in 2020, in response to the rapidly unfolding Covid pandemic.
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