Roku isn’t done shedding workers in order to turn around its woes. The streaming service has warned that it would lay off another 200 employees, or around 6% of its present workforce. It also intends to close or sublet offices that are no longer in use. The layoffs will help the company cut costs and focus on initiatives with a “better return on investment,” according to Roku.
The gadget and platform maker anticipates paying between $30 million and $35 million to deal with layoffs and building closures. The majority of those expenses should be covered in the first quarter, or by the end of the current month. The layoffs are expected to be completed by the end of Roku’s second quarter, or in June.
Roku said in November that the company will cut 200 positions due to difficult “economic conditions.” It predicted a year-over-year sales reduction and has already been dealing with slower revenue growth in the second half of 2022. Roku, like its online video rivals Disney and Netflix, is dealing with an approaching recession as well as the end of a pandemic-era boom that kept many people at home watching TV. The bankruptcy of Silicon Valley Bank earlier this month didn’t help the firm; it estimated it might have lost more than 25% of its capital if authorities hadn’t stepped in to preserve depositors.
Roku is far from the only major technology business that has laid off employees this year. Among many others, Google, Amazon, Meta, and Microsoft have all reduced their workforces. But, Roku’s price cuts come at a critical juncture. It recently unveiled its first self-made televisions, and it faces fierce competition in hardware and services from Amazon, Apple, and Google. Roku is under pressure to invest considerably in technology in order to compete with its frequently rich rivals.