Streaming platform Roku to cut about 10% of its workforce
The California-based company had 3,600 full-time workers in 14 countries as of December 31 2022, according to its annual report.
Roku is cutting about 10% of its workforce, or 360 people, and it will limit new hiring as it cuts costs to stem a series of quarterly losses.
The streaming platform also said in a regulatory filing that it expects adjusted third-quarter revenue of between 835 million dollars and 875 million dollars, which is much better than the 828.6 million dollars that Wall Street was projecting, according to analysts polled by FactSet.
Shares, which have already doubled since the start of the year, gained 11% before the opening bell.
Roku anticipates a restructuring charge of 45 million dollars to 65 million dollars related to the job cuts.
The charge will mostly include severance and benefits costs, with the majority of the charge expected to occur in its fiscal third quarter.
The Silicon Valley company also expects an impairment charge of 160 million dollars to 200 million dollars in its third quarter as it consolidates some offices.
An impairment charge of 55 million dollars to 65 million dollars is anticipated for removing certain existing licensed and produced content from Roku-operated services on its TV streaming platform.
The California-based company had 3,600 full-time workers in 14 countries as of December 31 2022, according to its annual report.
Roku anticipates the job cuts being mostly complete by the end of its fiscal fourth quarter.
After a streak of profitable quarters during the pandemic, Roku has put up a string of quarterly losses that began in 2022.
The company said in late July, when it posted a 107.6 million dollar loss, that television advertising “remains muted industry-wide”, but that it is in a good place to accelerate growth as advertising recovers.
The tech industry underwent a wave of lay-offs after hiring went into overdrive during the pandemic.
