Roku, streaming device manufacturer, has announced a restructuring plan that will see about 200 employees or 6% of its workforce laid off.
The move, according to a company filing, is aimed at prioritizing projects that yield a high return on investment.
Details of Roku Workforce Restructuring Plan
Roku’s restructuring will also involve the exit and subleasing of some of its office space, which it considers redundant. This will result in an estimated $30 to $35 million in non-recurring charges related to severance costs, notice pay, employee benefit contributions, and other costs related to the cessation of use of its office facilities.
The company expects a significant proportion of the charges to be incurred in the first quarter of the year, and it plans to complete the headcount reductions and cash payments by the end of the second quarter.
Roku’s operating losses increased to $249.9 million in the last quarter, up from the previous quarter’s loss of $147 million. Nonetheless, it exceeded its sales projections, reporting total net revenue of $867.1 million for Q4 2022, up from the projected $804.19 million.
The company did not disclose which positions or locations would be affected by the layoffs. The last time Roku laid off staff was in November 2022, when 200 US employees were let go, citing economic conditions.
Roku is not the only tech company that has laid off workers recently; Amazon, Meta, and others have also taken similar actions.
Amazon recently laid off another 9,000 workers in the upcoming weeks. The layoffs, which started in November and continued into January as originally indicated, are in addition to the reduction.
More than 18,000 employees were affected by that round, the majority of whom worked in the company’s retail, devices, recruiting, and human resources departments.
Roku was founded in 2002 and specializes in digital media products that allow users to stream content on their TVs.
Follow techkudi.com for more