Roku said today it plans to lay off 200 employees, or 6% of its workforce, as part of a restructuring plan as the drumbeat of staff cuts across the industry continues. Roku laid off 200 last fall on advertising woes and a challenging economy, both of which are still rocky.
Roku said in a statement today that it approved the plan to lower “the year-over-year operating expense growth and prioritize projects that the Company believes will have a higher return on investment.”
It will also result “in the exit and sublease, or cease use, of certain office facilities that the Company does not currently occupy.”
It estimates that it will incur non-recurring charges of approximately $30 to $35 million in connection with the restructuring, primarily consisting of severance payments, notice pay, employee benefits contributions and related costs and impairment charges for facilities. The charges will hit in the (current) first quarter of 2023 and that the implementation of the headcount reductions, including cash payments, will be substantially complete by the end of the second quarter.
Roku remains a key gateway to streaming but has been hit like much of the industry with a soft ad market due in large part to an uncertain economy, as well as a broader shift across the streaming landscape since emerging from Covid. New layoffs across media, entertainment and tech are reported daily, with Disney currently in the midst of its first round of cuts that will total 7,000. Electronic Arts and Warner Music Group announced yesterday they are cutting, respectively, 750 jobs and 200 jobs.
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