HIGHLIGHTS

Sonos CEO Patrick Spence is resigning after eight years of leadership.

Tom Conrad, a current board member and former executive at Snap and Pandora, will serve as interim CEO.

Patrick Spence, who joined Sonos in 2012 after a significant tenure at BlackBerry, will continue as an adviser to the board until June.

Patrick Spence, the Chief Executive Officer of Sonos, has announced his resignation after an impactful eight-year tenure. Spence’s departure comes in the wake of a tumultuous period for the company, primarily due to a problematic app update that alienated many users and hindered Sonos’ growth strategy. Effective immediately, Tom Conrad, an existing board member and seasoned professional with a background at Snap and Pandora, has been appointed as the interim CEO. In an effort to secure a long-term successor, Sonos is engaging with a search firm.

The issues stemming from the recent app redesign, which debuted in May, have sparked considerable discontent among Sonos users. The update introduced numerous bugs, eliminated essential features such as sleep timers and alarms, and resulted in a convoluted user interface that bewildered longtime customers. Many users, having invested significantly in their Sonos audio systems, expressed their frustration. Although the company has attempted to rectify these issues, the toll on its reputation has proven to be substantial.

In a candid email directed to staff members, Conrad noted the gravity of the situation: “When it fails to operate as intended, our customers are deprived of an enjoyable experience and are justifiably disappointed in us,” referencing the negative feedback the company has received. “It’s safe to say we have let far too many individuals down this year.”

Additionally, there’s a related story that mirrors the current troubles at Sonos: a customer ordered a Sonos speaker worth ₹30,009 on Flipkart only to receive a low-cost Bluetooth speaker instead.

The setbacks caused by the software issues belied the excitement surrounding Sonos’ latest product releases, which included the Ace headphones and the Arc Ultra soundbar. Financially, the company reported a 16% revenue decline in its fiscal fourth quarter, with analysts projecting a further 15% drop during the critical holiday shopping season. Following the release of the updated app, Sonos shares also took a hit, falling by 6.1% to $13.64, continuing a downward trend that began with the app launch.

Spence, who joined Sonos in 2012 after a successful career at BlackBerry, has agreed to serve as an advisor to the board until June. As part of his exit arrangement, he will be compensated with a severance package of $1.9 million along with unvested stock options.

Stepping into the interim CEO role, Tom Conrad, known for his dedication to Sonos—evidenced by a tattoo of Sonos headphones—carries a wealth of experience from his leadership roles at Pandora, Snap, and Quibi. For his contributions as interim CEO, he is set to receive a monthly salary of $175,000 along with an additional $2.65 million in stock options.

In a message to Sonos employees, Conrad acknowledged the considerable challenges confronting the company but emphasized a sense of optimism for its future. “It’s critical that we return to our foundational principles, but that alone will not suffice to realize the future we aspire for Sonos,” he stated, reflecting on the need for a strategic reevaluation and proactive measures to restore the brand’s standing.