Sonder cuts costs, plans layoffs ahead of Marriott tie-in

The company announced $50 million in annualized cost reductions and $18 million in share sales as it prepares to fully integrate into Marriott channels in Q2

Sonder Holdings has announced significant cost reductions and the sale of Series A shares as part of its ongoing integration into Marriott International's network. The San Francisco-based accommodation provider will achieve $50 million in annualized savings through layoffs, software cost reductions, and operational efficiencies. As part of this transition, Sonder expects to have all of its properties live on Marriott’s platforms by the end of the second quarter, expanding its reach and revenue potential.

Key takeaways

• Sonder will reduce costs by $50 million annually, mainly through layoffs, software savings, and operational improvements.
• The integration with Marriott, which began in October 2024, is expected to increase Sonder’s revenue by leveraging Marriott’s distribution, loyalty program, and sales capabilities.
• Sonder’s properties will be fully integrated into Marriott’s systems by the end of Q2 2025, appearing under the "Sonder by Marriott Bonvoy" collection.
• This partnership aims to boost Sonder’s growth and profitability, adding apartment-style accommodations to Marriott's portfolio while giving Sonder access to Marriott’s vast customer base and resources.
• The company previously faced stock declines due to accounting errors and a round of layoffs in early 2024 but remains optimistic about the integration’s positive financial impact.

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