Bang & Olufsen say sayanora to Sorensen

After a disappointing year, Bang & Olufsen – a company known for their superior audio quality, decided to fire their CEO, Torben Sorensen. B&O’s stock price followed it sales into the gutter and someone felt a change must be made. The search is on for a replacement.

Klaus Madsen, a Copenhagen-based analyst at Svenska Handelsbanken, is calling this “a managerial vacuum in the company.”

“The bulk of the downgrade is explained by the macroeconomic environment. It’s tough to act much faster than what we’ve seen Bang & Olufsen do. They revised their guidance and said to the market they’d do anything they could on the cost side.”

In the past year, profits have been down by a whopping 37%, if that doesn’t spark concern, I don’t know what does. Now, Bang & Olufsen has decided to go back to focusing strictly on audio and video – their strengths. Almost everyone seems to have some product in the crowded audio market, even the high end is becoming crowded, forcing B&O to move swiftly. Also, no word on who will be replaces Sorensen.

Read [Businessweek] Via [Engadget]