Roku is handing out pink slips again and exiting some office space as the streaming platform company takes additional steps to rein in costs.
The company said Thursday it will lay off about 200 employees, or 6% of the company’s remaining workforce. In addition, Roku said, it will exit and sublease (or discontinue use of) some office facilities that the company does not currently occupy. Roku disclosed the cutbacks in an SEC filing.
Roku’s latest job cuts come after the company in November 2022 announced that it was eliminating 200 jobs in the U.S., citing “current economic conditions.”
In the second half of 2022, Roku’s revenue growth slowed dramatically and the company told investors it projects overall revenue declining about 5% in the first quarter of 2023. At the same time, Roku’s operating expenses have soared — up 71% in the fourth quarter.
On Thursday, Roku said the latest restructuring plan is aimed at reducing year-over-year operating expense growth and to “prioritize projects that the company believes will have a higher return on investment.” The company estimates it will incur one-time charges of $30 million to $35 million in connection with the latest layoffs and office closures. Roku expects to incur the majority of the restructuring charges in the first quarter of 2023 and that the layoffs, including severance payments, will be substantially complete by the end of June 2023.
Separately, Roku earlier this month encountered a cash-flow issue after the failure of Silicon Valley Bank, where the company held about 26% of the its cash and cash equivalents — representing $487 million as of March 10.
Roku has hired Dan Jedda, a 15-year veteran of Amazon and former CFO of Stitch Fix, as chief financial officer effective May 1. He will take over for departing Roku CFO Steve Louden.
Roku’s business includes streaming devices and connected TVs but the company generates the bulk of its revenue from the Platform business, which includes advertising on the Roku Channel and subscription-revenue sharing agreements with content partners.
Read More About:
Source: Read Full Article
