Sonos, once a pioneer in wireless home audio, is fighting to regain customer trust after a turbulent year marked by software failures, leadership changes, and financial losses. The company is now outlining a strategy to recover from its recent missteps and restore its reputation in the competitive home audio market.
The Crisis Unfolds
Sonos’ troubles began in May 2024 when a major app update, intended to improve user experience, instead removed essential features and introduced numerous glitches. Customers were unable to control speaker volume or set alarms, leading to widespread frustration. As complaints flooded social media and forums, the company’s slow response further angered users. Analysts estimate the software failure cost Sonos around $100 million in revenue.
The financial impact was severe. The company’s revenue fell from $1.66 billion in fiscal year 2023 to $1.52 billion in 2024. In January 2025, longtime CEO Patrick Spence stepped down, and in February, Sonos announced layoffs affecting 200 employees, or 12% of its workforce.
Shifting Strategies
Interim CEO Tom Conrad has promised to fix Sonos’ software issues and rebuild trust. He announced a restructuring of product teams, shifting the focus from individual products to broader areas like software, quality, and design.
“It’s salvageable, but they’ve got to act quick,” said Brent Thill, an analyst at Jefferies. “They have great products, but they’ve lost consumer excitement.”
Sonos is now under pressure to deliver improvements in three key areas: performance and reliability, usability and design, and new customer experiences.
From Industry Leader to Challenger
Founded in 2005, Sonos revolutionized home audio with its wireless speaker systems. It built a loyal customer base through sleek designs and intuitive software. However, as streaming services evolved and tech giants like Google and Amazon entered the market, Sonos struggled to innovate beyond hardware.
The recent app failure has only deepened its troubles, turning it from a “customer experience darling” into a “customer experience dropout,” said Larry Vincent, a professor at USC Marshall School of Business.
A Chance at Redemption
Sonos’ financial struggles continue, with back-to-back annual losses and a 22% stock decline year-over-year. Yet, industry experts believe a turnaround is possible—if the company can successfully restore user confidence.
“I’m hoping they turn it around,” Vincent said. “Brands like this don’t come around all the time.”
As Sonos enters 2025, the company’s future depends on whether customers are willing to give it another chance.
