Roku to reduce workforce by 10%, halt hiring.
Digital streaming device maker Roku is making strategic moves to cut costs, including another round of layoffs and a slowdown in hiring, according to a recent regulatory filing with the Securities and Exchange Commission (SEC).
Roku, based in San Jose, California, has evaluated its operations and decided to implement measures to reduce its year-over-year operating expenses. This includes a workforce reduction, limiting new hires, and other cost-cutting measures.
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The company expects these layoffs to affect approximately 10 percent of its employees. Additionally, Roku anticipates incurring restructuring charges of $45 million to $65 million related to the job cuts.
Roku had 3,600 full-time workers in 14 countries as of December 31, 2022, according to its annual report.
Alongside the layoffs, Roku plans to consolidate office space, reduce outside services, and conduct a strategic review of its content portfolio. This review may involve removing select licensed and produced content from its streaming platform.
3rd Quarter Revenue Expectations
Roku expects to record an impairment charge of $160 million to $200 million for the office consolidation and a $55 million to $65 million loss for the streaming reduction.
This marks the third round of layoffs at Roku in less than a year. The company previously laid off 200 workers in March and 200 U.S. positions in November 2022.
Similar to other tech giants, Roku has faced challenges with slowing revenue in recent months. The COVID-19 pandemic initially boosted profits for these companies, but as the situation evolves, they have experienced a decline in revenue.
Roku began posting quarterly losses in 2022 and reported a $107.6 million loss in July of this year. However, the company remains optimistic about its future growth as advertising recovers.
In its regulatory filing, Roku stated that it expects adjusted third-quarter revenue of between $835 million and $875 million.
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