Sonos, the US-based high-tech speaker and audio technology company, has announced plans to reduce its workforce by approximately seven percent, which translates to around 130 employees. This decision comes as the company faces challenging economic conditions. In addition to job cuts, Sonos also intends to decrease its real estate footprint and re-evaluate certain program expenditures, reported IANS.

According to a filing submitted to the US Securities and Exchange Commission (SEC) on Wednesday, Sonos stated that decisions regarding job eliminations would adhere to local laws and consultation requirements in specific countries. The company also expressed its commitment to reducing real estate space and reassessing program expenses.

"Decisions regarding the elimination of positions are subject to local law and consultation requirements in certain countries. The company also committed to further reducing its real estate footprint and re-evaluating certain programme spend," Sonos said in a filing with the US Securities and Exchange Commission (SEC) on Wednesday.

The restructuring process is expected to incur charges of about USD 11 to USD 14 million, with a significant portion allocated to employee severance and benefits costs, ranging from USD 9 to USD 11 million. Sonos anticipates that most of these charges will be accounted for in the third quarter of fiscal year 2023. As of October 2022, Sonos employed a total of 1,844 individuals, the IANS report added.

This is not the first time Sonos has implemented measures to adjust its workforce. In response to the rapid spread of the Covid pandemic, the company reduced its headcount by 12 percent in 2020.

In a separate development, a US court recently ruled that Google must pay Sonos USD 32.5 million for infringing on one of the company's smart speaker patents. The court found that Google's smart speakers and media players violated Sonos' intellectual property rights. Jurors decided that Google should compensate Sonos with USD 2.30 for each of the more than 14 million devices sold.

As Sonos embarks on these restructuring efforts and awaits the outcome of the legal proceedings with Google, the company aims to navigate the current economic challenges while positioning itself for future growth and success.

Read the full report here.