Audio company Sonos announced 7% layoffs, shrinking its real estate business.

CTOnews.com Sonos announced in its 8-K filing with the Securities and Exchange Commission that it would lay off 7% of its workforce and scale back its real estate business to cut costs.

Sonos said it will reduce its involvement in real estate and reassess certain project expenditures in order to rationalize its cost base while still investing in its product roadmap.

Sonos estimates it will cost $11 million to $14 million (CTOnews.com notes: currently about 78.76 million yuan to 100 million yuan) to make the changes, of which $9 million to $11 million (currently about 64.44 million yuan to 78.76 million yuan) is for employee severance payments and benefits.

Sonos has about 1844 employees, so the layoffs are 7%, affecting about 130 employees.

Sonos is a Santa Barbara, California-based consumer electronics company founded in 2002 by John MacFarlane, Craig Shelburne, Tom Cullen and Trung Mai, focusing on slightly products.