In a filing this week, connected talker producer Sonos memo hopes to cut 12% of its workforce, in addition to closing some of its smaller powers and its garish showroom in Manhattan’s Soho neighborhood.
The move follows a letter to shareholders transported last month that acknowledged strives stemming from a combination of closed retail storefronts and a broader lowering of is asking for its indulgence audio products.
“Our second one-quarter was challenging, as we live in a 17% year-over-year decline in revenue, ” the company wrote. “Coming off a strong first one-quarter, we had expected some softness during the second quarter and we did meet challenges primarily from a large retail partner in the US rebalancing inventory as well as some weakness in our German marketplace from inventory rebalancing at our distributor. In March, our total revenue rejected 23% year-over-year as the usual replenishment prescribe cycles/second in the majority of our resolve groceries was stopped due to the softer global demand environment and broad-based physical retail closes to be derived from the COVID-1 9 pandemic.”
CEO Patrick Spence fortified the move in a statement sent to TechCrunch, locating much of the blamed at the feet of the ongoing COVID-1 9 pandemic.
“When the pandemic affect, we took immediate action to review our investments for its first year and fixed changes to reduce operating expenses and prolong liquidity, ” Spence wrote. “The pandemic and resulting fiscal blows have caused us is essential to spawn some hard choices, including reductions to our workforce, and the closure of some of our smaller departments and our storefront in New York City. These alterations are necessary in order for us to emerge from this period ready to take advantage of opportunities we see in the future.”
The chief executive says staff were informed during numerou all-hands powwows over the course of the day yesterday, adding that the hardware producer will be offering up severance, healthcare and career coaching for those impacted by the decision.
The company’s board has also agreed to a 20% cut in Spence’s base salary, effective July 1 through the end of September.
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