Sonos Layoffs

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Sonos announces layoffs, refocus on streaming music, voice services - Network-connected speaker manufacturer Sonos is laying off some of its employees, at the same time as refocusing the company so it works better with streaming music services in the future. A blog post from CEO John MacFarlane confirms there will be staffing changes, as well as outlining the company's future plans, which includes taking on Amazon and its own Echo speaker by bringing voice control to its product range.
"Today, the entire music ecosystem is in transition - ultimately for the better - and so is Sonos," > writes MacFarlane. Noting a need to "substantially and confidently increase" its investment in the "future of music," MacFarlane wants to make the company capable of "sustained innovation, steady growth, and future vitality," with Sonos already taking steps in that direction.

"The short term - and very difficult - consequence of this decision is we've had to make some changes to our team." MacFarlane admits Sonos is in the process of letting go of some employees "who have played important roles getting us to this point," but doesn't explain how many members of the workforce will be departing, nor the timescale.

As for where the company is going, it has two main areas it is looking at. For paid streaming services, Sonos aims to become "the vanguard of what it means to listen to music at home." Noting increased interest in the services, MacFarlane acknowledges the "dramatic acceleration of paid music subscriptions" triggered by Apple Music, with other services and the rest of the music ecosystem beginning to "embrace and advance streaming all over the world."

MacFarlane doesn't go into detail of what Sonos will do for streaming music, but notes the path forward for both the music industry and the company "is crystal clear." It is likely this means Sonos will work harder to make it as easy as possible for its customers to set up their streaming services with their speakers, rather than for it to create its own streaming music service.

The other avenue is one that directly targets Amazon's Echo speaker range, or more specifically, Alexa. While "voice recognition isn't new," MacFarlane highlights Echo finding a "sweet spot in the home" for navigating music and accessing online services, like weather reports. "Alexa/Echo is the first product to really showcase the power of voice control in the home. It's popularity with customers will accelerate innovation across the entire industry. What is novel today will become standard tomorrow."

Sonos will be taking the "long view in how best to bring voice-enabled music experiences into the home," with MacFarlane noting voice is a "big change" for the company, and intends to "invest what's required to bring it to market in a wonderful way."