Roku cuts 10% of workforce, slows down on new hiring
Latest round of layoffs is 3rd time Roku cut jobs over past year
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Roku Inc. is cutting 10% of its workforce and curbing hiring plans in an effort to lower expenses, the company said Wednesday in a regulatory filing.
The video streaming company laid out a series of cost-cutting measures that it says will bring down its annual headcount expense growth rate.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| ROKU | ROKU INC. | 74.32 | -0.89 | -1.18% |
In addition to the job cuts, which will impact about 300 employees, the company also plans to consolidate its office space, conduct a strategic review of its content portfolio and reduce outside services expenses.
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Roku shares rose in early morning trading.
The Roku app on a television in Hastings-On-Hudson, New York, on Tuesday, July 25, 2023. (Tiffany Hagler-Geard/Bloomberg via Getty Images / Getty Images)
Roku is among several tech companies that have implemented workforce cuts. Amazon, Google parent Alphabet, X (formerly known as Twitter), Facebook parent Meta, Microsoft, Dell and Zoom all announced layoffs in an effort to streamline operations.
The latest round of layoffs marks the third time Roku cut jobs within the past year. In November 2022, it cut 200 positions in the U.S. in order to lower its headcount expenses by a projected 5%. Three months later, the company laid off another 200 employees.
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The company expects to record between $45 million and $65 million in charges related to the latest workforce reduction, mostly due to costs associated with severance and benefits. The majority of these charges will be incurred during the fiscal third quarter.
Roku's company logo is seen in front of the company's headquarters on Nov. 18, 2022, in San Jose, California. (Justin Sullivan/Getty Images / Getty Images)
The company also expected to face an impairment charge of $160 million to $200 million in its third quarter related to ceasing to use certain office facilities. It also expects an impairment charge of $55 million to $65 million related to removing select existing licensed and produced content on its TV streaming platform.
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Roku now expects its net revenue will fall within the range of $835 million to $875 million for the third quarter, up from its earlier forecast of about $815 million.