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Sonos Stock Dips After Report of Senior Executive Layoffs
Summary
Shares of Sonos Inc. fell on Wednesday following a report that the company has laid off several long-tenured executives in its design and product management departments. The company's CEO framed the move as a way to make the company more competitive and agile.
Shares of audio company Sonos Inc. (NASDAQ:SONO) declined by 2% by the close of trading on Wednesday. The drop followed a Bloomberg report detailing the recent layoffs of several senior executives in the company's design and product management teams.
According to the report, which cited people with knowledge of the matter, the departures include a number of long-serving employees. Among those let go were Dana Krieger, a vice president of design with 12 years at the company; Kate Wojogbe, a top user experience executive with nearly 10 years of service; and Scott Fink, a 15-year veteran who contributed to home theater products. Senior design director Michelle Enright and hardware product manager Sara Lincoln, with 14 and 11 years at Sonos respectively, also departed.
In a memo seen by Bloomberg News, Chief Executive Officer Tom Conrad positioned the changes as an effort to streamline the company and reduce management layers. Conrad stated a desire for Sonos to "move with more conviction and more velocity," aiming for "Fewer months in conference rooms. More prototypes in our labs. More decisions made and executed."
AdA Sonos spokesperson confirmed the job reductions in late June, stating at the time that they were unrelated to artificial intelligence. The company also noted that it maintains a deep bench of senior talent in the affected departments.