Roku To Cut 200 U.S. Jobs As It Copes With Advertising Softness
Roku is joining the growing list of tech and media companies reducing their workforces, announcing plans to cut 200 positions in the U.S.
“Due to the current economic conditions in our industry, we have made the difficult decision to reduce Roku’s headcount expenses by a projected 5%, to slow down our OpEx growth rate,” the company said in a statement. “This will affect approximately 200 employee positions in the U.S. Taking these actions now will allow us to focus our investments on key strategic priorities to drive future growth and enhance our leadership position.”
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Roku has had an even more difficult 2022 than most tech peers, despite the continued overall growth of streaming. It recently posted disappointing third-quarter financial results, which were hampered by a pullback in streaming advertising, and warned of further softness in the current quarter despite the holiday season boosting overall levels of streaming. The company’s once-high-flying stock has crumbled, losing about 80% of its value in 2022 to date.
As with Netflix, Amazon and other tech names, Covid was a potent boost for Roku but it has been tougher sledding recently, particularly as many advertisers have pulled back on spending due to the broader economic climate. Rising inflation and a looming recession have led even ultra-reliable sellers of advertising like YouTube to report declining revenue of late. Tech companies like Meta Platforms, Amazon and others have laid off workers as they look to find equilibrium.
Roku remains one of the primary gateways for streaming, with more than 65 million active accounts across smart-TVs and connected devices.
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