Roku becomes latest firm to reduce staff with 200 job cuts

Reuters
2022.11.17 13:48
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Nov 17 (Reuters) - Roku Incsaid on Thursday it would cut 200 jobs in the United States, becoming the latest tech company to lay off workers amid an economic slowdown and decades-high inflation.

Nov 17 (Reuters) - Roku Inc (ROKU.O) said on Thursday it would cut 200 jobs in the United States, becoming the latest tech company to lay off workers amid an economic slowdown and decades-high inflation.

Tech companies including Meta Platforms Inc (META.O) and Snap Inc (SNAP.O) have reduced staff this year as they grapple with a slowdown in growth and mounting costs.

The video-streaming device maker expects to book a charge between $28 million and $31 million in the fourth quarter related to the layoffs, mainly severance payments and associated costs.

Shares in Roku, which said layoffs would cut staff expenses by an estimated 5%, fell 2% in trading before the bell.

The company’s shares have plunged about 75% this year as inflation and the risks of a looming recession have cut ad-spending budgets.

Roku, which blamed “current economic conditions” for the cuts, had 3,000 full-time employees in 13 countries as of Dec. 31 last year.

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