All products featured on Wired are independently selected by our editors. However, we may receive compensation from retailers and/or from purchases of products through these links.
Wireless home stereo company Sonos has said it will layoff some employees as it reinvests in paid streaming and voice control.
Sonos CEO John MacFarlane said in a blog post that the company had "always taken a long-term view", and needed to adjust to the "transition" underway in "the entire music ecosystem".
What that means in practice for Sonos is that it will "substantially and confidently" increase investment in voice control, and in paid streaming services, and reduce its focus on other areas. Sadly, for Sonos employees that also means uncertain times are ahead. "The short term -- and very difficult -- consequence of this decision is we’ve had to make some changes to our team," MacFarlane wrote. "We do this with a heavy heart, as we are in the process of letting go of some Sonos employees who have played important roles getting us to this point. We wish them well, and we’re doing everything we can to make their transition as smooth as possible."
The news may worry owners of wireless Sonos systems, whose relatively high price, and reliance on Sonos front- and back-end software reviewers have consistently noted is offset by a seamless, easy-to-use experience and excellent sound quality. But with most of its speakers lacking physical connections, their long-term usefulness arguably depends on Sonos itself remaining in good health. The company said that it remains fundamentally strong, however, and sought to reassure its customers. "We're not chasing short-term gains or answering to impatient investors," MacFarlane said. "Rather, we're making a decision to substantially and confidently increase our investment in the future of music."
On paid streaming, Sonos said that the launch of Apple Music in 2015 had reinforced changes that had been underway for almost a decade. "With Apple's influence, the entire ecosystem – labels, artists, management – began to embrace and advance streaming all over the world," MacFarlane said. The implication is that Sonos will look to find new and more elegant ways to control and navigate different paid services in the home.
"Now the path forward for the music industry is crystal clear, so too is our path at Sonos. We’re doubling down on our long-held conviction that streaming music is the dominant form of consumption now and in the future. We believe that listeners will grow increasingly dissatisfied with the solutions they've cobbled together for listening at home."
On voice control, Sonos paid explicit tribute to the Amazon Echo product, currently not available in the UK, which lets customers get information and order products via an always-on, always-listening speaker. "Here again, Sonos is taking the long view in how best to bring voice-enabled music experiences into the home," Sonos said. "Voice is a big change for us, so we’ll invest what's required to bring it to market in a wonderful way."
Sonos added that the last few week "have been tough", but MacFarlane said that "making these changes is the right thing to do for Sonos as we look to the future".
In a follow-up statement to Techcrunch, Sonos said: "Like many high growth companies, Sonos constantly evaluates its workforce to ensure we have the skills and talent to lead us to the next series of milestones. Our opportunity has never been greater as the transition to streaming accelerates. We’re in a terrific position to continue delivering great listen-out-loud experiences at home now, and in the future."
This article was originally published by WIRED UK
