Patrick Spence, CEO of Sonos, is recessing, leaving the company’s board of directors in a filming process that comes as wireless speakers are trying to enhance the confidence of its customers.
Last year, the Santa Barbara company has reduced its headquarters to repair the phone application that customers use to control the amplifiers and other audio products. The wrong efforts and glorification of its correction, which left a lot of work in their loudspeakers, angered the loyal brand customers and affected the company’s final result.
Spence, who led Sonos for eight years, will be employed with the company until June 30 and provides strategic advisory services, according to Organizational deposit. He will get a cash payment of $ 1.9 million.
Tom Conrad, a member of the Sonos Board for a long time, will be the temporary CEO.
Sonos said on Monday in a press release that she is working with an executive research company to find the new CEO “who will build on Sonos’s legacy for innovation and excellence in serving its customers while increasing profitable growth.”
Konrad, 55, has served as CEO of Omar Al -Safir Sciences and previously worked in QUIBI executive roles, the built -in broadcasting platform, Snap and Pandora Media. He will receive $ 175,000 per month as a temporary executive for Sonos and will receive $ 2.65 million from Sonos -restricted stock units.
“I am very honored to advance in this role at such an important moment for Sonos,” Conrad said in a statement. “Almost two decades ago, when she led the first initiative to integrate Pandora and Sonos, she got the first glance on the magic that Sonos could bring to millions of lives every day.”
In a note for employees that Conrad It was also published on the social networking site X, previously known as Twitter, the CEO also admitted the conflicts faced by the company.
He wrote in the observation: “I heard many of you about your frustration about the extent of our attraction from our common ideals,” he wrote in the note. “There is a huge amount of work in front of us, including what I am sure that it will be some difficult moments, decisions, and climbing …”
The Sonos application disaster was expensive. The company said last year that it will invest between $ 20 million and 30 million dollars to repair the application and provide more customer support, create a consulting board for customers and expand its guarantee for some products, among other changes. Executive officials pledged to abandon their annual rewards if the plan failed.
In August, the company said it would exclude 100 employees, which amounted to 6 % of its working power.
Sonos, which is competing against Amazon, Bose, Apple and other technology giants that make smart speakers, have seen its shares decreased about 9 % over the past 12 months. On Monday afternoon, the company’s shares were traded at $ 14.30.
The company’s revenues also decreased last year, even when it released new products such as the first pair of headphones and the new sound tape. In 2024, Sonos reported the revenues of the fiscal year amounting to $ 1.52 billion, a decrease of 8 % from 2023. results.
The company is scheduled to report the results of the first quarter in February.