Audio equipment maker Sonos announced that Patrick Spence has stepped down as chief executive officer following the fallout from a problematic app update that disrupted customer experiences and tarnished the company's reputation.

The board has appointed Tom Conrad, a long-time board member and former chief executive officer of Zero Longevity Science, as interim chief, effective immediately.

The decision comes in the wake of a challenging year for Sonos, with the launch of its new app in May 2024 proving to be a significant misstep. The app faced widespread criticism for failing to provide essential functionalities, such as accessing music libraries, setting sleep timers, and downloading the software. The company estimated the cost of addressing these issues to be between $20 million and $30 million, leading to a workforce reduction of approximately 6 per cent.

In October, Spence admitted to the errors surrounding the app's release and announced that he, along with seven other senior leaders, would forgo their bonuses. Despite these efforts, Sonos experienced a difficult year financially, with its stock value dropping over 12 per cent in 2024 and an anticipated decline in first-quarter sales by 9 to 22 per cent compared to the previous year.

Announcing Spence’s departure, Sonos chair Julius Genachowski thanked Spence for his contributions, stating: “During his tenure, Patrick built on our pioneering success in wireless home audio and led the company's expansion into premium audio for home theater, portables, and headphones.”

Tom Conrad, who has been on the Sonos board since 2017, expressed a strong commitment to restoring the company’s reputation and morale. In his first letter to employees, he wrote, "I’ve heard from many of you about your own frustrations about how far we’ve drifted from our shared ideals. There’s a tremendous amount of work in front of us, including what I’m sure will be some very challenging moments, decisions, and trade-offs, but I’m energised by the passion I see all around me for doing right by our customers and getting back to the innovation that is at the heart of Sonos’ incredible history."

Conrad has relocated to Santa Barbara, where the company is headquartered, and plans to work closely with employees to rebuild confidence and ensure smoother operations. Genachowski highlighted Conrad's role in enhancing the core customer experience while driving innovation and financial stability.

As Sonos navigates this transitional period, the company's leadership aims to repair its relationship with customers and employees, returning to the innovative spirit that established its prominence in the audio industry.

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