“Obviously a failure”: Sonos execs not getting bonuses due to app fiasco

Sonos’ controversial app update in May was “obviously a failure,” Sonos CEO Patrick Spence told Reuters today.

When the update launched in May, customers revolted over missing features, like the ability to search music libraries, edit song and playlist queues, and set sleep timers. In addition, some already purchased hardware, especially older models, began having problems.

In a note to investors on Tuesday, Sonos said that “more than 80 percent of the app’s missing features have been reintroduced.” The app should be “almost 100 percent restored in the coming weeks.” Sonos has been updating the app every two weeks in an effort to bring it to parity with the old one.

Speaking to Reuters, Spence took the blame for an app said to be rushed out prematurely ahead of Sonos’ first headphones, Ace. 

“This is obviously a failure of Sonos, but it starts with me in terms of where it started,” he said.

The CEO reportedly admitted to the botched rollout stemming from a lack of proper testing and a desire to push out a lot of features simultaneously:

We underestimated the complexity of the system, and so our testing didn’t capture all of the things that it should. We released it too soon.

Sonos was reportedly eager to get the app out to accommodate Ace, resulting in an overhaul of the app, its player side, and Sonos’ cloud infrastructure. Last month, purported former and current Sonos employees spoke about the app accumulating technical debt before being forced into an update that wasn’t ready and overlooked some workers’ concerns.

No executive bonuses for now

Reuters reported today that Spence and seven other execs “would forgo their bonus in the most recent fiscal year,” which ended on September 30. The publication noted that Spence got a bonus of approximately $72,000 for fiscal year 2023. Reuters reported that the company heads have “certain benchmarks” to meet to receive bonuses for the October 2024 to September 2025 fiscal year.

It’s not hard to understand why the executives aren’t getting their bonuses. In addition to the damage that the botched app redesign has wrought on Sonos’ reputation—aggravating long-time customers and deterring prospective ones—the app has had tangible financial consequences. The Santa Barbara, California company is expecting to pay up to $30 million in the short term to fix the app and try to restore customer and partner trust. The company also delayed two hardware releases, which led it to reduce its fiscal 2024 guidance. Sonos shares have fallen more than 30 percent since before the app update, Reuters noted.