Roku is laying off about 10 per cent of its workforce as it cuts costs to stem a series of quarterly losses and reduce its operating expenses. The company has roughly 3600 employees as per its 2022 reporting which implies about 360 or more have been affected in the layoff.
In a regulatory filing by the streaming service provider, says it expects an adjusted quarter revenue of between $835 million and $875 million. The company also anticipates a restructuring charge of $45 million to $65 million 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 company also expects impairment charge of about $160 million to $200 million in its third quarter as it consolidates some offices. An impairment charge of $55 million to $65 million is anticipated for removing certain existing licensed and produced content from Roku-operated services on its TV streaming platform.
Roku anticipates the job cuts being mostly complete by the end of its fiscal fourth quarter.
In addition to the layoffs, the company is also planning to to consolidate its office space utilization, perform a strategic review of its content portfolio as well as cut on outside service expenses including new hires.