Streaming device maker Roku to cut 200 jobs in second round of layoffs
ROKU will lay off 6 per cent of its workforce, or 200 employees, in its second round of job cuts, the US streaming device maker said, sending its shares up nearly 3 per cent before the bell on Thursday (Mar 30).
In a bid to lower expenses, the company also decided to exit and sub-lease office facilities that it did not currently occupy.
Roku had in November cut 200 jobs in the US, where companies, led by technology giants such as Meta Platforms and Amazon.com, are bracing for a potential economic downturn amid rising borrowing costs around the world.
Job cuts in US tech sector hit 63,000 in the first two months of the year, according to data from Challenger, Gray & Christmas Inc.
Roku, which had about 3,600 full-time employees as of Dec 31, expects to incur charges of between US$30 million and US$35 million related to the restructuring.
Majority of the restructuring charges will be incurred in the first quarter of fiscal 2023, while the job cuts will be completed by the end of the second quarter, the company said.
Earlier this month, Roku said it had about US$487 million, or 26 per cent of its cash and cash equivalents, in deposits with SVB Financial Group, which was closed down by California banking regulators. REUTERS
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