Sept. 6 (UPI) — Roku, the popular video streaming company, is set to lay off 10% of its workforce, an estimated 300 employees, marking its third round of layoffs within a year. This move comes as Roku aims to optimize its operating costs through content reduction.
Upon the announcement of the layoffs, Roku’s shares experienced a 5% increase. The news was initially disclosed in an 8-K SEC filing. Roku has been facing challenges in achieving profitability.
“To reduce our year-over-year operating expense growth rate, the company has decided to implement additional measures,” states the filing. These measures include limiting new hires, cutting expenses from external sources, and consolidating office spaces.
Despite a surge in viewership during the COVID-19 pandemic, Roku, alongside other streaming services, has witnessed a decline in viewership as the situation gradually normalizes. In 2020, Roku employed approximately 3,600 full-time staff members across 14 countries. In the second quarter of this year, the company reported a net loss of $107.6 million.
This recent round of layoffs is the third occurrence in less than a year. In November, the company laid off 200 employees, followed by another 200 in March.
Roku aims to complete the latest round of job cuts by the year-end. However, these layoffs may result in charges of $45 to $65 million for the company, including expenses related to severance and benefits payments.
In addition to the layoffs, Roku plans to remove certain licensed content from The Roku Channel, although specific details have not been disclosed. The company, headquartered in San Jose, California, seeks to refine its content offerings.
In the same filing, Roku has revised its third quarter projections, anticipating total net revenue to range between $835 million and $875 million, surpassing its previous forecast of $815 million.
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