Expensive home audio equipment isn't exactly recession-proof. (NASDAQ: SONO), known for its pricey wireless speakers and soundbars, is facing a rough downturn as consumers pull back on spending.

Revenue tumbled 23.9% year over year in the fiscal second quarter, which ended April 1, and free cash flow sank deep into negative territory on rising inventories. An inventory overhang among channel partners, coupled with weak consumer demand, has Sonos predicting a revenue decline between 4% and 7% for the full year.

Against this tough backdrop, Sonos announced on Wednesday that it would be laying off 7% of its workforce. In addition to the layoffs, the company is working to reduce its real estate footprint and rethinking some of its spending. Sonos will take between $11 million and $14 million in charges related to these moves.

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Source Fool.com