Sonos app disaster costs CEO Patrick Spence his job
Sonos CEO Patrick Spence has stepped down from his position, effective immediately, after a tumultuous eight-month period marred by the disastrous launch of the company’s new app earlier this year. Board member Tom Conrad will take over as interim CEO, as Sonos works to navigate one of the most challenging chapters in its history.
Spence’s resignation follows a series of setbacks beginning in May, when Sonos released a completely overhauled app that was riddled with bugs and missing key features. The premature launch infuriated customers and set off a chain reaction of negative events, including layoffs, a sharp decline in employee morale, and widespread public criticism.
The app’s release, which had been tied to the launch of the Sonos Ace headphones, drew attention for all the wrong reasons. The headphones, which were expected to be a major product for the company, quickly became overshadowed by the app’s failings, and sales numbers have reportedly been dismal.
Complaints flooded Sonos’ community forums and subreddit, with users expressing frustration over a variety of issues, including speakers disappearing from the app and persistent software glitches.
In an effort to regain control of the situation, Sonos outlined a turnaround plan in October, aiming to improve product development practices, increase internal transparency, and ensure that such a mistake would never be repeated. The company also enlisted a crisis management PR firm to assist in navigating the fallout. Despite these efforts, Spence’s leadership was ultimately deemed inadequate to recover from the app debacle, and the board concluded that his tenure needed to come to an end.
While the leadership change marks a significant shift for the company, no other immediate changes are being made to the executive team. Maxime Bouvat-Merlin, the company’s chief product officer, will remain in his position, despite some employees privately attributing part of the blame for the app’s missteps to him.
Sonos spokesperson Erin Pategas stated that the company is now focusing on moving forward, seeking a new CEO who can build on Sonos' legacy and lead the company into its next phase. "We’re turning a page on the chapter that we’re in and forging a path ahead that gets us in the direction we want to be going for ourselves and our customers," Pategas said. However, this new direction will not include returning to the old Sonos app. Despite the numerous issues, the company remains committed to the new software, which has received multiple bug fixes and feature updates over the last few months. Still, complaints persist, with users continuing to report problems such as speakers disappearing from the app.
Spence, who joined Sonos in 2012 as chief commercial officer before taking the CEO role, oversaw a number of successful product launches during his tenure, including the Sonos Arc Ultra soundbar, the portable Move and Roam speakers, and the Era 300 spatial audio speaker. However, the app debacle and Spence’s failure to offer an immediate public apology have left a lasting negative impression on the company’s loyal customer base, which contributed to his downfall.
While Spence will remain with Sonos until June 30th as a strategic advisor, he will be compensated with a base salary of $7,500 per month, with a severance package of $1.875 million upon his departure.
In the meantime, Tom Conrad, who joined Sonos' board in 2017, now faces the difficult task of restoring employee morale and consumer confidence. With a career spanning significant roles at companies like Pandora, Snapchat, and Quibi, Conrad’s experience with product development and crisis management is seen as an asset in this transitional period.
Despite the leadership change, Sonos’ product pipeline remains robust, with rumors of an upcoming streaming video player that could compete with the likes of Apple, Roku, and Amazon. As the company regroups under Conrad’s guidance, the hope is to recapture consumer trust and focus on innovation for the future.