Sonos CEO Pay Cut, Staff Axed & Offices Close
Audio equipment manufacturer, Sonos, has slashed the pay of many executive personnel by 20% including Chief Executive, Patrick Spence, as it battles global employee layoffs, with both retail and office closures.
A filing to the US SEC reveals Sonos plans to cut 12% of its global workforce, as it aims to reduce operating expenses and preserve liquidity amid the COVID19 pandemic.
Sonos will reportedly also close its NYC retail shopfront and six satellite offices.
From July to year end, Mr Spence will receive a 20% pay cut, also applying to other top-line executives until September 31. All board members will also forgo their cash retainer for the rest of 2020.
According to Sonos’ investor website, the company has over 1,450 full-time employees, equating to a potential 175 person loss.
Last month, a letter to shareholders revealed a 17% year-on-year drop in Sonos second-quarter revenue. Revenue tanked 23% year-on-year in March alone.
The company claims it intends to manage marketing reductions, further tighten inventory and cull discretionary operating expenses for the duration of the coronavirus pandemic.
Speaking to the The Verge, Mr Spencer asserts these “hard choices” are necessary for the company to “emerge from this period ready to take advantage of the opportunities we see in the future.”
The news comes after Sonos recently launched its new Arc, updated Sub speakers and Five, while transitioning its loyal customer base to its new S2 platform.
The company is known for its proprietary music playing platform, which some commentators claim is among its most valuable assets underpinning a loyal customer base.
Sonos’ NYC store was reportedly also where it planned to manage some production for its Sonos Radio streaming service.