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The Journal.

The Botched Software Update That Cost $600 Million

Mar 6, 2025
Ben Cohen, a WSJ reporter known for his incisive coverage of tech mishaps, dives into Sonos' disastrous software update that cost the company about $600 million in market cap. He discusses the widespread customer dissatisfaction and the fallout that included layoffs and a CEO exit. The conversation touches on the struggle to maintain a robust user experience in the high-end audio market and the challenges of navigating software update pitfalls. Cohen also shares insights on how Sonos is attempting to rebuild trust and stabilize its operations after the crisis.
21:07

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Quick takeaways

  • Sonos experienced a significant financial blow, losing $600 million in market cap due to a botched software update that frustrated users.
  • The company's response included multiple software patches and leadership changes, highlighting their commitment to improving user experience and regaining trust.

Deep dives

Consequences of a Disastrous Update

A recent software update from Sonos led to significant user dissatisfaction and operational challenges. Many users found their devices rendered nearly useless, missing essential features such as playlist editing and alarm settings. The abrupt change in functionality resulted in customers expressing their frustrations loudly, leading to a decline in the company’s reputation and financial standing. Over the months following the update's release, Sonos reported losses exceeding $100 million and a plummet in market cap by approximately $600 million.

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