Sonos is laying off 12% of its global workforce, and closing its New York retail store along with six satellite offices, due to challenges stemming from the coronavirus pandemic, according to the audio product and smart speaker manufacturer's latest filing with the United States Securities and Exchange Commission (SEC).
Additionally, Sonos CEO Patrick Spence will take a 20% pay cut through the end of the year, while other executive officers will take the same salary cut through September 30, and all members of the Board of Directors are giving up their annual cash retainer through the end of the year. Those changes go into effect July 1.
"The Company believes these initiatives will better align resources to provide further operating flexibility and more efficiently position the business for its long-term strategy," the filing reads. "These actions are solely related to the Company’s previously disclosed initiative to reduce operating expenses and preserve liquidity in the face of the pandemic and are not reflective of any material changes in the Company's business since it reported second quarter fiscal 2020 results."