Roku to slash 200 jobs, amounting to 6% of workforce

The announcement matches a previous round of layoffs that slashed 200 jobs.

March 30, 2023, 10:39 AM

Roku plans to lay off another 200 workers, or 6% of its workforce, the video-streaming company said in a government filing on Thursday, just months after a prior round of layoffs in the fall that slashed 200 jobs.

The company's revenue surged during the pandemic when customers stuck indoors came to rely on at-home entertainment.

However, the return of consumer habits more closely resembling pre-pandemic life has posed a challenge for the San Jose, California-based company.

The round of layoffs, which the company described as a "restructuring plan," aims to "lower the Company's year-over-year operating expense growth and prioritize projects that the Company believes will have a higher return on investment," the government filing said.

The layoffs will cost the company between $30 and $35 million due to severance payments and other employee benefits, the filing said.

PHOTO: Layoffs Hammer Tech Industry in 2023
Layoffs Hammer Tech Industry in 2023
ABC News Photo Illustration

The company's revenue stood essentially unchanged over the last three months of 2022 compared with the same period a year ago, according to an earnings report released last month.

Roku had previously warned of a difficult business environment expected at the end of last year due to a slowdown in ad spending and the adverse effects of inflation.

Shares of Roku ticked up about 1.5% in early trading on Thursday.

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