Sonos CEO Patrick Spence has stepped down after eight years, following widespread criticism over the company's failed app redesign (via Bloomberg).
The company has appointed board member and former Snap and Pandora executive Tom Conrad as interim CEO, effective immediately, while the search for a permanent replacement is conducted. The catalyst for the leadership shake-up was the May 2024 launch of a redesigned Sonos app, which sought to modernize the software and alongside adding support for the company's first headphones, the Sonos Ace, which were positioned to compete with Apple's AirPods Max.
The app rollout was marred by widespread technical issues and the removal of features such as sleep timers, alarms, and key accessibility options. Users reported connectivity problems, interface confusion, and lag, with some older Sonos systems rendered effectively unusable.
The company's revenue subsequently declined by 16% in the fiscal fourth quarter of 2024, with analysts projecting a further 15% drop for the critical holiday period. Sonos's stock price fell approximately 13% following the app update's release.
Sonos made efforts to address the new app's issues, including restoring some removed features and committing to fixing lingering bugs. Spence issued a public apology to customers, acknowledging the company's failings and outlining a timeline for improvements, but the damage to the company's reputation proved difficult to repair.
The company also faced internal struggles, including the postponement of new products, the cancellation of projects such as an Apple TV-style set-top box, and the layoff of approximately 100 employees in August 2024.
Tom Conrad has served on the Sonos board since 2017 and now steps into the role of interim CEO. Conrad was a co-creator of the Pandora music service and a vice president at Snap.
In an email to employees, he said: "When it doesn't work, our customers are taken out of the moment and are right to feel that we've let them down. I think we'll all agree that this year we've let far too many people down... Getting back to basics is necessary, but clearly not enough to unlock the future we all envision for Sonos," suggesting that he wants to expand the company "well beyond" home speaker equipment.
