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Sonos is taking these steps to give itself further operating flexibility and to efficiently reorient the business toward a long-term strategy, the filing said.
"When the pandemic hit, we took immediate action to review our investments for the year and made changes to reduce operating expenses and preserve liquidity,” Sonos CEO Patrick Spence said in a statement emailed to FOX Business.
The Sonos board also approved a 20 percent salary reduction for Spence from July 1 to Dec. 31 and for other executives from July 1 to Sept. 30, according to the filing.
“The pandemic and resulting economic impacts have caused us to have to make some hard choices, including reductions to our workforce, and the closure of some of our smaller offices and our storefront in New York City,” Spence added. “These changes are necessary in order for us to emerge from this period ready to take advantage of opportunities we see in the future.”
The filing also said that board members are forgoing their cash retainer for the rest of the year, starting July 1.
It’s unclear how many employees were laid off by Sonos, Engadget estimates that 175 people could lose their jobs.
The website reported that Sonos’ revenue declined 23 percent in March compared to last year, citing a letter to shareholders. In light of the news, Sonos said at the time that it planned to reduce expenses.
On Wednesday, Sonos shares were down .33 points, or 2.34 percent by market close.