Shares of audio products provider Sonos (NASDAQ:SONO) are trading marginally lower today after the company announced a 7% headcount reduction.
Additionally, Sonos is also committing to further lowering its real estate presence and taking a relook at certain program expenses. It is undertaking the move to streamline costs while still making investments to drive future growth.
Sonos expects to incur charges in the range of $11 million and $14 million as a result of the move. Virtually all of the charges are anticipated to be incurred in the third quarter of this year with employee severance and benefit costs making up nearly $9 million to $11 million.
Sonos shares have dropped nearly 19% over the past year while short interest in the stock currently stands at about 13%. Overall, the Street has a $22.18 consensus price target on Sonos alongside a Strong Buy consensus rating.
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