Sonos Restructures, Will Lay Off 200

One day before its next earnings announcement, Sonos announced it would restructure the company into a simpler organization. Unfortunately, it will also be a smaller organization: Sonos will lay off about 200 employees during the restructuring.

“We’ve become mired in too many layers that have made collaboration and decision-making harder than it needs to be,” Sonos interim CEO Thomas Conrad explained in a publicly posted letter to employees. “So across the company today we are reorganizing into flatter, smaller, and more focused teams.”

Conrad is reorganizing Sonos into five function product groups–Hardware, Software, Design, Quality and Operations–replacing the previous structure, which consisted of business units for specific product categories. This new organization is simpler and smaller, and Conrad says it will help the new cross-functional project teams to come together to improve the core Sonos experience and help it deliver new products

The layoffs consist of approximately 12 percent of the Sonos workforce, and Sonos reported to the U.S. Securities and Exchange Commission that it would take $15 million to $18 million in restructuring charges, mostly in the current quarter.