As chief executive, Spence oversaw many successful products. But there was no coming back from last year’s app debacle: it has finally led to his ouster.
Sonos CEO Patrick Spence is resigning from the company today, effective immediately, with board member Tom Conrad filling the role of interim CEO. It’s the most dramatic development yet in an eight-month saga that has proven to be the most challenging time in Sonos’ history.
The company’s decision to prematurely release a buggy, completely overhauled new app back in May — with crucial features missing at launch — outraged customers and kicked off a months-long domino effect that included layoffs, a sharp decline in employee morale, and a public apology tour. The Sonos Ace headphones, rumored to be the whole reason behind the hurried app, were immediately overshadowed by the controversy, and my sources tell me that sales numbers remain dismal. Sonos’ community forums and subreddit have been dominated by complaints and an overwhelmingly negative sentiment since the spring.
In October, Sonos tried to get a handle on the situation, which by then had spiraled into a full-on PR disaster, by outlining a turnaround plan. The company vowed to strengthen product development principles, increase transparency internally, and take other steps that it said would prevent any mistake of this magnitude from ever happening again. I can also report for the first time that Sonos hired a crisis management public relations firm to help navigate the ordeal.
But three months later, Sonos’ board of directors and Spence have concluded that those steps weren’t enough: the app debacle has officially cost Spence his job. No other changes are being made today, however. So for now, chief product officer Maxime Bouvat-Merlin, who some employees have privately told me deserves a fair share of the blame for recent missteps, will remain in his role.
“We’re going to initiate a search for the next CEO, and we’ll work on finding a leader who’s going to continue to build on our legacy and work with the team to move the company forward,” Sonos spokesperson Erin Pategas told me by phone on Sunday afternoon. She described the leadership change as “turning a page on the chapter that we’re in and forging a path ahead that gets us in the direction that we want to be going for ourselves and our customers.”
In case you were wondering, that direction will not include a return to the old Sonos app; Pategas said the company remains fully committed to the new software, which has received a slew of bug fixes and gradually added back previous features over the last several months. It’s gotten better, but even this far along, complaints remain about speakers randomly vanishing from the app and other problems.
Patrick Spence joined Sonos in 2012 as chief commercial officer. As CEO, he oversaw a wide range of successful hardware products; Sonos released several impressive soundbars (including the still-new Arc Ultra), pushed into portable audio with the Move and Roam, and debuted the forward-looking Era 300 spatial audio speaker. But the app stumbles — and Spence’s failure to apologize in the immediate aftermath — ultimately soured his reputation with the company’s most loyal customers. There was no overcoming that.
Spence will technically remain with Sonos until June 30th of this year, during which he’ll receive a base salary of $7,500 per month for providing the company with “strategic advisory services.” And when that end date does roll around, he’ll be granted a severance of $1,875,000. Those numbers come from an 8K filing that Sonos made with the SEC regarding today’s news.
It now falls on Tom Conrad, who joined the Sonos board in 2017, to rally disenchanted employees and make good on winning back consumer trust. Conrad’s career includes a 10-year tenure as chief technology officer at Pandora and two years as VP of product at Snapchat. He worked on Apple’s Finder software during the ‘90s. Most recently, Conrad served as chief product officer for the ill-fated Quibi streaming service. Pategas believes he’s a great fit for the interim CEO position because he’s keenly aware of the company’s current predicament; Conrad and chief innovation officer Nick Millington have already been spearheading Sonos’ fix-the-app effort for months.
Despite this seismic shift at the top, Sonos’ future product pipeline remains “full steam ahead,” Pategas told me. The company’s next major new product is rumored to be a streaming video player, which would pit it against the likes of Apple, Roku, Amazon, and Google in the living room.
