Sonos CEO Patrick Spence. Photo credit: Stephen McCarthy/Collision via Sportsfile, under Creative Commons license

As indicated by a filing with the U.S. Securities and Exchanges Commission (SEC), audio equipment maker Sonos is laying off 12% of its total workforce and also closing its New York retail store. As part of the layoffs, the company is shutting down six of its satellite offices. Sonos blames reduced sales due to the coronavirus pandemic as the reason for the layoffs. The company expects to incur between $9 million to $11 million in employee severance and benefits costs and between $16 million to $19 million primarily as a result of its office closures.

As part of cost-cutting efforts, Sonos’s CEO alongside its main executive officers have agreed to a 20% base salary cut from the months of July through September. All of the company’s board members have also agreed to forgo their annual cash retainer from the months of July through December.

Sonos is aiming to reduce operating expenses and preserve liquidity in the face of the coronavirus pandemic, which has led to widespread retail closures and decreased sales as a result. Sonos says it believes its cost-cutting initiatives “will better align resources to provide further operating flexibility and more efficiently position the business for its long-term strategy.”