Roku products arranged in Hastings-On-Hudson, Recent York, July 25, 2023.
Tiffany Hagler-Geard | Bloomberg | Getty Images
Roku said it would lay off 10% of its workforce, or about 360 people, because the streaming software company looks to slash expenses.
In a regulatory filing Wednesday, the corporate said the cost-cutting measures aim to bring down its year-over-year operating expense growth rate.
The corporate added that it expects adjusted third-quarter revenue of between $835 million and $875 million, up from a previous forecast of $815 million. As well as, Roku raised its third-quarter guidance for adjusted EBITDA to a spread of negative $40 million to negative $20 million in comparison with a previous estimate of negative $50 million.
Shares of the San Jose, California-based company rose 10% in early morning trading before giving up a few of those gains.
The layoffs are a part of an array of cost-cutting actions the corporate will take. Other actions include consolidating office space, slowing the pace of latest hiring and reducing outside services expenses.
Roku expects impairment and restructuring charges within the third quarter of as much as $330 million, including a spread of $160 million to $200 million related to office facilities, and $45 million to $65 million related to the job cuts.
Furthermore, Roku said it expects an impairment charge of $55 million to $65 million related to the removal of select existing licensed and produced content on its TV streaming platform, as a part of a “strategic review of its content portfolio.”Â
Roku anticipates the layoffs will likely be mostly complete by the top of its fiscal fourth quarter. The corporate had 3,600 full-time employees as of December 2022, in keeping with FactSet.
That is Roku’s third round of layoffs over the past yr because it scales back after a period of investment. The corporate cut about 200 employees in March and one other 200 employees in November.
On CNBC’s “Squawk on the Street,” Jim Cramer said the layoffs and other cost-cutting measures should help the corporate pivot toward profitability and attract additional investors.
