Sonos CEO Patrick Spence is stepping down from the company after eight years on the job, . This follows last year’s , in which a redesign was missing core features and was broken in nearly every major way.
The company has tasked Tom Conrad to steer the ship as interim CEO. Conrad is a current member of the Sonos board, but was a co-founder of Pandora, VP at Snap and product chief at, wait for it, the . He also reportedly has a Sonos tattoo. The board has hired a firm to find a new long-term leader.
“I think we’ll all agree that this year we’ve let far too many people down,” Conrad wrote employees in a letter. “Getting back to basics is necessary, but clearly not enough to unlock the future we all envision for Sonos.” He also suggested that he wants the company to expand “well beyond” home speakers and related gear.
As for Spence, he’ll be just fine. His payout package includes $7,500 per month until June, a cash severance of $1.9 million and his unvested shares in Sonos will vest. He was with Sonos for more than a decade.
The decision to swap leadership comes after months of turmoil at the company. It rolled out a mobile app back in May that was absolutely rife with bugs and missing key features like alarms and sleep timers. Some customers even complained that entire speaker systems would no longer work after updating to the new app. It was a whole thing.
Sonos by extending the manufacturer warranty for home speaker products and creating an advisory board that would provide the company with “feedback and insights from a customer perspective to help shape and improve our software and products before they are launched.”
That didn’t ease the financial burden faced by the company. The stock price has fallen by around 13 percent since the app launched. Sonos laid off over 100 people in August as it tried to fix the software and revenue fell 16 percent in the fiscal fourth quarter, which ended on September 28. Analysts project an additional 15 percent decline throughout the holiday period.