Sonos has announced a significant restructuring effort, which includes laying off approximately 200 employees - roughly 12% of its total workforce. This marks the second round of layoffs in just six months for the audio technology company.

Interim CEO Tom Conrad explained in a company-wide letter that Sonos has become bogged down with excessive organizational layers, hampering collaboration and decision-making. The restructuring aims to create flatter, smaller, and more focused teams.

The announcement comes on the heels of several challenging developments for Sonos:

• A problematic app update in May 2023 that removed crucial features and caused widespread customer dissatisfaction
• The departure of former CEO Patrick Spence in January 2024
• Previous layoffs in August 2023, affecting approximately 100 employees
• Ongoing issues with the company's app, including missing features and persistent bugs

Despite these setbacks, Sonos is moving forward with plans to launch a new high-end streaming player, building on the success of its Arc Ultra soundbar from the previous year.

The timing of this announcement, just before the company's first-quarter earnings report, suggests continuing financial challenges for the audio technology company as it works to regain customer trust and market position.

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