Sonos cuts jobs and shrinks real estate in cost-cutting drive

Sonos has revealed plans to lay off 7% of its workforce, and downsize its real estate presence, as the latest tech company to eliminate jobs.

The company, which specializes in designing and manufacturing smart speakers and audio products, announced the layoffs in a filing with the SEC, according to Seeking Alpha. The process of eliminating positions must comply with specific legal obligations and consultation requirements in particular countries.

Sonos wants to continue reducing what it summarizes as its "real estate footprint," and reassess specific program expenditures. The company expects to face restructuring and associated expenses amounting to approximately $11 million to $14 million, with employee severance and benefits costs accounting for $9 million to $11 million.

The majority of the restructuring and associated expenses are anticipated to be incurred by Sonos during its fiscal third quarter.

Sonos joins the growing list of companies implementing workforce reductions, with Meta being another notable example. In May, Meta carried out its third round of layoffs, resulting in the elimination of approximately 6,000 positions.

In contrast, Apple has avoided widespread layoffs, and CEO Tim Cook emphasized that such a measure would only be considered a final option.

During the pandemic, Silicon Valley witnessed a surge in hiring to meet the rising demand for products. However, as the pandemic subsided and an economic downturn ensued, the need for these products diminished, resulting in widespread job cuts.

Instead, Apple has demonstrated commendable resilience by evading large-scale layoffs. The company opted to reduce hiring and implement cost-cutting measures through alternative approaches.

"I view that as a last resort and, so, mass layoffs is not something that we're talking about at this moment," Cook said in an interview.