Roku to Lay Off 200 Employees in Second Round of Job Cuts to Reduce Expenses

Streaming device maker Roku is laying off around 200 employees, or 6% of its workforce, as part of a plan to lower its year-over-year operating expense growth and prioritize high return-on-investment projects, according to an SEC filing. The company has already laid off 200 U.S. employees in November 2021, citing economic conditions in the industry. The restructuring will also result in the “exit and sublease” of certain office space Roku no longer occupies.

The layoffs will cost Roku between $30 and $35 million in non-recurring charges, including severance costs, notice pay, and employee benefit contributions. Most of these charges will be incurred in Q1 2022. Roku expects to complete the headcount reductions and cash payments by the end of Q2 2022.

In its previous layoffs, Roku had cited the need to slow down the growth of its operating expenses due to economic conditions. The announcement had followed the company’s Q3 results, in which it warned of an unsatisfactory Q4 ahead.

Roku’s most recent earnings report for Q4 2022 showed total net revenue of $867.1 million, beating its own revenue expectations of around $800 million, while analysts predicted a decline of 7% year-over-year to $804.19 million. It also reported 70 million active accounts worldwide, up from 65.4 million in Q3. However, the company’s operating losses had widened to $249.9 million, up from a loss of $147 million in the previous quarter.

The company did not disclose which roles or locations would be affected by the latest round of layoffs. In response to the news, Roku declined to provide additional information beyond its SEC filing. Other tech companies, including Amazon and Meta, have also announced headcount reductions over the past few months.