The Botched Software Update That Cost $600 Million
The Journal.
The Wall Street Journal
4.2 • 5.8K Ratings
🗓️ 13 October 2025
⏱️ 19 minutes
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| 0:00.0 | Hey everyone, it's Jess. We're off for the holiday, but we wanted to share a story about how one company's disastrous software update led to widespread customer anger, layoffs, and a complete leadership overhaul, and ended up costing $600 million. Here it is. |
| 0:21.1 | Updating your software. |
| 0:23.0 | It's one of our modern, common chores. |
| 0:26.0 | Mostly, it's annoying, inconvenient, but we do it because it's supposed to make sure our |
| 0:31.3 | stuff works better. |
| 0:33.3 | So when a software update somehow makes things worse, people get mad. |
| 0:37.8 | Like back in 2014, when an iPhone update caused a bunch of people's phones to crash. |
| 0:45.3 | The latest software update called iOS 8.0.1 meant to fix software bugs |
| 0:51.3 | reportedly crashing some users' phones instead. |
| 0:55.0 | Or in 2016, when an update to the Nest thermostat left people angry and cold. |
| 1:01.0 | Their internet-connected thermostats have been malfunctioning, ever since they got a software upgrade last month. |
| 1:06.0 | Or last year, when a CrowdStrike software update caused major travel delays. |
| 1:11.4 | It was a faulty software update by cybersecurity company CrowdStrike that caused disruptions |
| 1:16.7 | across multiple industries. |
| 1:20.6 | In the best-case scenarios, companies act fast and fix the problems, and we can all move on. |
| 1:31.5 | But our colleague Ben Cohen recently wrote about a software update that has plagued a company for months now. |
| 1:34.4 | It was so buggy that it turned into one of the most disastrous software updates |
| 1:39.5 | in the recent history of consumer technology, |
| 1:42.6 | which I know sounds like a bit of an exaggeration, |
| 1:46.5 | but it's kind of not. |
| 1:48.6 | The company with the software update from hell is Sonos. |
| 1:52.5 | It makes high-tech speakers that are controlled through its app. |
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