Roku, Inc. Announces Workforce Reduction, To Impact Approx. 10% Of Employees

(RTTNews) - Roku, Inc. (ROKU) has decided to implement additional measures to continue to bring down its year-over-year operating expense growth rate by consolidating office space utilization, performing a strategic review of content portfolio, reducing outside services expenses, and slowing year-over-year headcount expense growth rate through a workforce reduction and limiting new hires.

Roku expects workforce reduction to impact approximately 10% of its employees. The company expects to record a restructuring charge related to the workforce reduction, primarily consisting of severance and benefits costs, in a preliminary estimated range of $45 million to $65 million. Roku expects the majority of the restructuring charge will be incurred in the third quarter of 2023.

Excluding the restructuring and impairment charges, the company now expects total 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 for the third quarter.