Wednesday, June 24, 2020

Sonos To Cut 12 Percent Of Employees, Blames Pandemic

Santa Barbara-based whole home speaker system manufacturer Sonos says it plans to cut 12 percent of its global headcount--and will close its New York retail store and six satellite offices--due to "uncertainty and challenges" stemming from the COVID-19 pandemic. According to Sonos, it is looking to reduce its operating expenses nd preserve liquidity in light of the pandemic. Sonos will take a charge of approximately $25M to $30M in restructuring and related expenses, including $9M to $11M in employee severance and benefit costs. In addition to the employee cuts, Sonos said its board has approved a 20 percent reduction in the base salary of its CEO from July 1st until December 31st, and for other executives from July 1st through September 30th. Sonos also said all members of its board have agreed to forgo their annual cash retainers for July 1st to December 31st.