Roku cuts another 200 jobs to reduce expenses
According to Reuters, the well-known streaming device maker Roku intends to cut 200 more jobs as part of ongoing cost-cutting efforts. The action follows the company’s announcement in November. It said that it’d cut 5% of its staff due to the challenging landscape of the advertising industry.
The new job cuts account for 6% of total Roku employees and will affect a number of divisions. Roku also said it would leave and sublease office facilities that are not in use anymore. Following the announcement, the company’s shares went up nearly 3% on Thursday.
According to reports, Roku is looking for methods to simplify its processes and cut costs. It’s contending with escalating competition from rivals like Amazon, Google, and Apple. Meanwhile, the layoffs in the United States tech sector have reportedly impacted 63,000 in the first two months of 2023.
Roku axes 200 jobs amid financial concerns
The affected employees will be given severance packages and other assistance as part of the job cuts, which are anticipated to take place over the coming months. The severance packages could cost the company about $30 to $35 million.
The choice was made following a careful examination of the company’s operations and financial situation, although the company has not yet made a public statement regarding the news and just submitted a filing with the Securities and Exchange Commission. The filing states that Roku expects the layoffs to be completed by the end of the second quarter of fiscal 2023.
Roku has established itself as a tenacious and flexible player in the streaming market, and it will likely continue to find methods to prosper in future years. However, it is still unclear how the move will affect the company’s growth and innovation.
Roku also has been one of the fastest-growing businesses in the streaming sector in recent years. The company ended 2022 with over 70 million active accounts worldwide.
The streaming industry has become a new battlefield between Big Tech, and Roku will have a hard time competing against these trillion-dollar companies. The increased competition in the industry has put massive pressure on Roku, though.
According to Reuters, the well-known streaming device maker Roku intends to cut 200 more jobs as part of ongoing cost-cutting efforts. The action follows the company’s announcement in November. It said that it’d cut 5% of its staff due to the challenging landscape of the advertising industry.
The new job cuts account for 6% of total Roku employees and will affect a number of divisions. Roku also said it would leave and sublease office facilities that are not in use anymore. Following the announcement, the company’s shares went up nearly 3% on Thursday.
According to reports, Roku is looking for methods to simplify its processes and cut costs. It’s contending with escalating competition from rivals like Amazon, Google, and Apple. Meanwhile, the layoffs in the United States tech sector have reportedly impacted 63,000 in the first two months of 2023.
Roku axes 200 jobs amid financial concerns
The affected employees will be given severance packages and other assistance as part of the job cuts, which are anticipated to take place over the coming months. The severance packages could cost the company about $30 to $35 million.
The choice was made following a careful examination of the company’s operations and financial situation, although the company has not yet made a public statement regarding the news and just submitted a filing with the Securities and Exchange Commission. The filing states that Roku expects the layoffs to be completed by the end of the second quarter of fiscal 2023.
Roku has established itself as a tenacious and flexible player in the streaming market, and it will likely continue to find methods to prosper in future years. However, it is still unclear how the move will affect the company’s growth and innovation.
Roku also has been one of the fastest-growing businesses in the streaming sector in recent years. The company ended 2022 with over 70 million active accounts worldwide.
The streaming industry has become a new battlefield between Big Tech, and Roku will have a hard time competing against these trillion-dollar companies. The increased competition in the industry has put massive pressure on Roku, though.
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