​Sonos Layoffs Announced As Strategy To Compete With Streaming Services

Sonos Layoffs
Author: Kara GilmourBy:
Staff Reporter
Mar. 11, 2016

Sonos layoffs have been announced as part of a reshaping strategy for the company in a new direction. Sonos CEO John Macfarlane doesn’t say exactly how many jobs are going to be cut, but he says its’s a consequence of the still in-transition music industry, according to MacNN.

“Everyone in the ecosystem is adjusting to a world of streaming services,” he said, citing the addition of The Beatles back-catalogue across the top music streaming services.

Macfarlane says it’s an inevitable change — and that’s why the company is now focusing on these users over customers that are playing from non-streamed files and physical music collections. How? He’s not saying, but it’ll apparently involve “building incredibly rich experiences that were all but unimaginable when we started the company.”

The company recently added Apple Music to its list of compatible services.

The second target is voice. Explicitly mentioning Amazon’s Echo products, the CEO said that voice recognition will be a big change for the company best known for speakers. Macfarlane adds that the company is investing into the technology to make sure it works like it should, reaffirming that the company wants to ensure it’s a sustainable, profitable one — and that means catering to the music streaming revolution.

The Sonos layoffs and market strategy could put the company in direct competition with Amazon and its Echo device, which uses voice recognition to control the smart home. It could also set Sonos up for collaboration with the tech giant.

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