Streaming system maker Roku on Wednesday stated it is going to lay off 10% of its workforce — reportedly reducing about 300 individuals — within the third spherical of employees reductions inside a yr for the San Jose-based firm.
The firm stated it continues to guage its operations to avoid wasting prices. It plans to additional reduce bills by lowering its workplace house, eradicating sure licensed and produced content material from its streaming platform, lowering exterior providers bills and limiting its new hires, in response to a doc filed with the U.S. Securities and Trade Fee.
Roku has confronted a difficult surroundings for media and leisure promoting. Hollywood’s enterprise has been severely hobbled by the continued strikes by movie and tv writers and actors.
“It’s been challenged industrywide, and we anticipate it to be additional pressured within the second half of this yr by the restricted all launch schedules arising from the present labor strikes,” stated Dan Jedda, Roku’s chief monetary officer in an earnings name in July.
Roku beforehand introduced in November 2022 that it might reduce 200 jobs and in March 2023 stated it might lay off 6% of its workforce.
The corporate ended 2022 with 3,600 staff in 14 international locations. A spokeswoman didn’t instantly reply to what number of Southern California staffers can be affected on this spherical of layoffs or whether or not there can be any affect in its actual property footprint in Santa Monica.
The corporate within the second quarter reported a internet lack of $107.6 million, in contrast with a lack of $112.3 million a yr earlier. Income was $847 million within the second quarter, up 11% from a yr in the past.
“Whereas shopper spend is displaying some modest development, macro issues and uncertainty stay,” Roku’s CEO Anthony Wooden and Jedda wrote in a shareholder letter in July.
The workforce discount is predicted to be full by the tip of its fourth quarter, Roku stated.
The corporate stated it expects to have a $45-million to $65-million restructuring cost associated to the layoffs, a $160-million to $200-million impairment cost associated to “ceasing to make use of sure workplace services” and a $55-million to $65-million impairment cost for eradicating content material from Roku-operated providers.
In the course of the pandemic, Roku had skilled vital development in its streaming providers and expanded its employees in Santa Monica. The corporate, recognized for its linked TV units and streaming TV platform, had expanded into different manufacturing classes through the years, together with making and designing its personal branded TVs and sensible residence merchandise.