Sonos isn't the first company to damage its reputation with a single big mistake, but it's certainly one of the more notable examples in recent years.
The audio brand, known for its sleek smart speakers, has been in crisis during the past year, and it all started with a single bad software update.
In May 2024, Sonos released a completely revamped mobile app, promising users that the new software would offer more custom options, supercharge speaker performance, and allow the company to release more enhanced features in the future. But according to The Verge, the app was glitchy. Critical features were missing, and previously happy Sonos customers suddenly found that their speakers no longer performed as well.
The backlash was swift and furious, but Sonos stuck by the new app, and reassured customers that it was a bump in the road on the way to a better user experience. But the issues weren't minor — basic functionality like sleep timers and the ability to edit playlists and upcoming song queues had vanished, and customers who paid thousands for high-tech sound systems wanted more than just promises. As one user said on Sonos's online forum, "I'm going to listen through a Roku device rather than the $500-plus Sonos Five, because I cannot stand reconnecting my phone and the Five several times a week."
Finger-pointing at Sonos ensued. High-ranking executives lost their jobs and additional layoffs followed. The stock price tanked and subsequent product launches failed to perform as anticipated.
According to the Wall Street Journal, the premature app release was the start of a catastrophe that cost the company about $500 million. In January, the CEO who oversaw the app rollout, stepped down. But, it remains to be seen if the company can weather the crisis.
