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The Journal.

The Botched Software Update That Cost $600 Million

The Journal.

The Wall Street Journal

Daily News, Business News, News

4.25.8K Ratings

🗓️ 13 October 2025

⏱️ 19 minutes

🧾️ Download transcript

Summary

We’re off today for the holiday, but wanted to share this episode. Sonos, the high-end speaker company, is still reeling from its disastrous app update over a year ago. WSJ’s Ben Cohen explains how the company lost revenue and approximately $600 million in market capitalization. Then came the layoffs and a CEO exit. Jessica Mendoza hosts. This episode was first published in March 2025. Further Listening:  The Glitch That Crashed Millions of Computers The Snowballing Problems at Vail Resorts Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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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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