Sonos CEO Patrick Spence has stepped down from his position, effective immediately, following a disastrous app launch that sparked widespread customer outrage and a decline in employee morale. The company's board of directors has appointed Tom Conrad, a current board member, as the interim CEO.
The decision comes eight months after Sonos released a buggy, overhauled new app in May, which was missing crucial features and sparked a wave of customer complaints. The app's premature release was reportedly rushed to coincide with the launch of the Sonos Ace headphones, but the controversy surrounding the app overshadowed the product's debut. According to sources, sales numbers for the headphones remain dismal.
The fallout from the app launch was severe, with layoffs, a decline in employee morale, and a public apology tour. The company's community forums and subreddit were dominated by complaints and negative sentiment, with many customers expressing frustration and disappointment with the brand. In October, Sonos outlined a turnaround plan, vowing to strengthen product development principles, increase transparency, and take steps to prevent similar mistakes in the future.
Despite these efforts, the company's board of directors and Spence have concluded that the measures were insufficient, and the CEO's resignation was necessary. Spence will remain with Sonos until June 30th, providing "strategic advisory services" for a base salary of $7,500 per month. He will also receive a severance package of $1,875,000 upon his departure.
Tom Conrad, who joined Sonos' board in 2017, will take over as interim CEO. Conrad has a background in technology, having served as chief technology officer at Pandora and VP of product at Snapchat. He worked on Apple's Finder software in the 1990s and most recently served as chief product officer for the ill-fated Quibi streaming service. According to Sonos spokesperson Erin Pategas, Conrad is a great fit for the role, given his awareness of the company's current predicament and his involvement in the fix-the-app effort.
Despite the leadership change, Sonos' future product pipeline remains unaffected, with the company pushing forward with its plans. The next major new product is rumored to be a streaming video player, which would pit Sonos against major players like Apple, Roku, Amazon, and Google in the living room.
The departure of Spence marks a significant shift for Sonos, which has faced intense scrutiny and criticism in recent months. As the company moves forward under new leadership, it will be crucial for Conrad to address the lingering concerns of customers and employees, and to restore trust in the brand.
For those with insight into the situation at Sonos, Chris Welch, the author of this article, invites confidential tips and information to shed more light on the events leading up to Spence's resignation.