Sonos CEO resigns after app redesign fails
Sonos CEO Patrick Spence has resigned after eight years in office. The reason was serious problems that arose after the launch of the company's updated app, which received a lot of negative feedback, Bloomberg reports.
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Tom Conrad, a member of the board of directors and former top manager of Snap and Pandora, was appointed interim CEO. He took up his duties immediately, while the search for a permanent leader continues.
The updated app, introduced in May 2024, was supposed to improve the user experience and support the company's first Sonos Ace headphones, a competitor to Apple's AirPods Max. However, the launch was accompanied by serious problems: the sleep timer, alarms, and important accessibility features were removed from the app. Users complained about a complicated interface, connection interruptions, and delays, which made some older Sonos systems almost unusable.
As a result, the company's revenue decreased by 16% in the fourth fiscal quarter of 2024, and analysts predict a further 15% drop in the pre-holiday period. Sonos shares fell by 13% after the release of the update.
Sonos tried to solve the problems: it restored some of the functions and promised to fix the shortcomings. Spence himself apologised to customers, but the damage to his reputation was significant.
The company also faced internal difficulties: postponing new products, cancelling projects, and laying off 100 employees in August 2024.
Pandora co-founder Tom Conrad said: "Our customers were right when they felt we had let them down. We need to get back to basics, but that's not enough to unlock Sonos' potential."
Source: Bloomberg
