Roku will cut more than 300 staffers — laying off 10% of its workforce — as the streaming-platform company continues its battle to control costs.<\/p>\n
In addition, Roku will remove certain licensed and owned content from its platform as part of a “strategic review of its content portfolio,” resulting in an impairment charge of up to $65 million in the current quarter, the company disclosed in an SEC filing Wednesday.<\/p>\n
Other cost-cutting measures Roku outlined are consolidating office space and reducing outside services expenses. The goal is to reduce year-over-year operating expense growth rate, the company said. <\/p>\n
The layoffs represent Roku’s third round of job cuts in less than a year, after it pink-slipped 200 staffers in November 2022 and another 200 in March 2023. As of the end of 2022, Roku had approximately 3,600 full-time employees. The company, in addition to the layoffs, said it also plans to cut back on new hires.<\/p>\n
In the third quarter of 2023, Roku expects to record an impairment charge in a preliminary estimated range of $160 million to $200 million related to ceasing to use certain office facilities and an impairment charge in a preliminary estimated range of $55 million to $65 million related to removing select existing licensed and produced content from company-operated services on its TV streaming platform. The Company does not expect any material cash expenditures in connection with the impairment charge related to content.<\/p>\n
Roku expects to record a restructuring charge related to the layoffs in a preliminary estimated range of $45 million to $65 million, primarily consisting of severance and benefits costs. The company expects the majority of the restructuring charge will be incurred in the third quarter of 2023.<\/p>\n
Roku said that excluding the restructuring and impairment charges, the company now expects Q3 net revenue in the range of $835 million to $875 million, and adjusted EBITDA in the range of negative $40 million to negative $20 million — slightly better than forecast.<\/p>\n