Sonos Inc., renowned for its premium audio technology, has announced the departure of CEO Patrick Spence after eight years in the role. Move follows a turbulent year marked by customer dissatisfaction over a poorly received app revamp that significantly impacted the company’s reputation and growth trajectory.
Effective immediately, Tom Conrad, a current board member and former executive at Snap Inc. and Pandora, will serve as interim CEO. The company has engaged an executive search firm to identify Spence’s permanent successor. Sonos clarified that Spence’s departure is not linked to its upcoming first-quarter financial results, expected in February.
Customer Backlash Over Faulty App Revamp
decision to change leadership comes after Sonos faced months of turmoil, primarily stemming from its May 2024 mobile app overhaul. Intended to modernize the interface and support new hardware, the redesign was plagued with bugs. Customers reported a loss of critical features such as sleep timers and alarms, confusion over the new interface, and functionality issues that disrupted their daily routines.
“When it doesn’t work, our customers are taken out of the moment and are right to feel that we’ve let me down,” Conrad wrote in a message to employees. He acknowledged that despite releasing innovative products like the Arc Ultra soundbar and Ace headphones, negative experiences overshadowed his achievements.
Financial and Reputational Impact
app debacle led to widespread customer frustration, especially among those who had heavily invested in Sono’s systems. Complaints ranged from unresponsive apps to the removal of key features, leaving customers unable to fully utilize high-end equipment. Efforts to revert to the old app were deemed infeasible due to engineering challenges.
The fallout severely impacted Sonos’ financial performance. Revenue declined by 16% in the fiscal fourth quarter of 2024, and analysts anticipate a 15% drop during the holiday period. The company’s stock price has also suffered, falling 13% since the app’s launch.
Adding to the strain, Sonos laid off 100 employees in August and delayed multiple product launches, including a highly anticipated TV set-top box.
Leadership Transition
Conrad, who joined Sonos board in 2017, has pledged to address the challenges and regain customer trust. A seasoned executive, he previously played a pivotal role in developing Pandora and served as Snap’s vice president. Conrad’s compensation as interim CEO will include a $175,000 monthly salary and $2.65 million in stock.
Spence, who joined Sonos in 2012 after a stint at BlackBerry, will remain an adviser to the board until June 2025. He will receive a severance package of $1.9 million in cash and vesting of his unvested Sonos shares.
A Path Forward
Despite recent setbacks, Sonos remains committed to innovation. The board expressed gratitude for Spence’s contributions, particularly his role in broadening the product lineup to include headphones and redesigned speakers.
Conrad has outlined plans to restore operational stability and explore new opportunities beyond home audio equipment. “Getting back to basics is necessary, but not enough to unlock the future we all envision for Sonos,” he said, signaling a bold vision for the company’s next chapter.
Sonos, a longtime favorite among audiophiles, now faces the challenge of rebuilding its brand and customer confidence. The coming months will determine where Conrad and the leadership team can steer the company toward sustained success in an increasingly competitive market.
