Roku Inc. has recently unveiled its plans to lay off approximately 10% of its workforce
Roku Inc., a leading player in the streaming media industry, has recently unveiled its plans to lay off approximately 10% of its workforce in an effort to rein in the growth of operating expenses. This decision comes as the company continues to navigate the ever-evolving landscape of streaming services and competition.
As of the end of 2022, Roku boasted a workforce of around 3,600 employees, according to its most recent annual filing. However, this isn't the first time the company has opted for workforce reduction. In March of the same year, Roku had already announced plans to cut 200 jobs, indicating that the company has been actively reevaluating its staffing needs.
Roku expects that this latest round of layoffs will result in a significant financial impact, estimating a restructuring charge of $45 million to $65 million. This charge primarily comprises severance packages and benefits for the affected employees, reflecting the company's commitment to supporting its workforce during this challenging transition.
While the restructuring is anticipated to affect the company's gross profit and bottom line, Roku appears optimistic about its revenue outlook. The company has revised its third-quarter revenue forecast upward, now expecting to generate between $835 million and $875 million. This represents a notable increase from its earlier projection of $815 million.
Roku's cost-cutting strategy encompasses various aspects of its operations. Apart from the layoffs, the company plans to consolidate its office spaces, conduct a strategic review of its content portfolio, reduce expenses related to external services, and curtail hiring.
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