Official announcement from Sonos or reliable business news outlets

Sonos CEO Resigns After App Debacle; Tom Conrad Named Interim CEO

Jan 13, 2025, 01:18 PM

Sonos CEO Patrick Spence has stepped down from his position, effective immediately, following the fallout from a botched app revamp that caused widespread customer dissatisfaction and stymied the company's growth. The app, launched in May 2024, was criticized for being buggy, removing key features, and causing connectivity issues with Sonos devices. The backlash led to a decline in employee morale, layoffs of around 100 employees, and a public apology from the company. The app redesign, rushed to support the launch of the Ace headphones, overshadowed the product's release and hurt its sales, which remain dismal. Sonos’ stock price has fallen 13% since the app launch. CEO Patrick Spence had made seven promises to address customer concerns, but these efforts failed to restore confidence. Tom Conrad, a board member and former executive at Snap Inc., Pandora, and Quibi, has been appointed interim CEO. Sonos has stated that Spence will remain as an advisor until June 30, 2025, and will receive a severance package of $1.875 million. The company has hired a firm to search for a new CEO and is committed to improving its product development and customer trust.