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Sonos CEO Patrick Spence Steps Down Amid App Update Controversy
Sonos CEO Patrick Spence has resigned following a tumultuous period marked by a disastrous app update, leading to customer dissatisfaction and financial setbacks. Tom Conrad steps in as interim CEO as the company seeks to regain its footing.
In a significant leadership change, Sonos announced the immediate resignation of CEO Patrick Spence on January 13, 2025, following a challenging year dominated by a controversial app update. The update, launched in May 2024, was met with widespread customer backlash due to numerous bugs and missing features, which severely impacted the user experience and led to a decline in the company's reputation and financial performance.
Spence, who joined Sonos in 2012 and took over as CEO in 2017, oversaw the release of several successful products, including the Sonos Arc Ultra soundbar and the Sonos Ace headphones. However, the app debacle overshadowed these achievements, leading to a sharp decline in employee morale, layoffs, and a public apology tour. The company estimated that fixing the app would cost between $20 million and $30 million, and it also reported a 16% revenue decline in the fourth quarter of 2024.
Tom Conrad, a board member since 2017 and former executive at Pandora and Snap, has been appointed as interim CEO. In his first message to employees, Conrad acknowledged the company's failures and emphasized the need to regain customer trust. Despite the leadership change, Sonos remains committed to the new app, with ongoing efforts to address its issues and restore missing features.
Spence will serve as an advisor to Sonos until June 30, 2025, receiving a monthly salary of $7,500 and a severance package of $1.875 million upon departure. The company is now searching for a permanent CEO to lead it through this critical period and rebuild its legacy.
The app update controversy not only affected Sonos' financial performance but also delayed the launch of new products, including a rumored streaming video player. As Sonos navigates this transition, the focus will be on restoring customer confidence and ensuring that future software updates meet the high standards expected by its user base.
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