Layoffs Hit Roku Amid Cost-Cutting Efforts

Roku is set to cut 10 percent of its workforce and embark on a strategic review of its content portfolio.

The company revealed in an SEC filing that as it looks to bring down operating expenses, it is “consolidating its office space utilization, performing a strategic review of its content portfolio, reducing outside services expenses and slowing its year-over-year headcount expense growth rate through a workforce reduction and limiting new hires, among other measures.”

The layoffs are expected to impact about 10 percent of its employees, resulting in restructuring charges of between $45 million to $65 million.

In Q3, Roku expects to record an impairment charge of $160 million to $200 million related to ceasing to use certain office facilities and an impairment charge of $55 million to $65 million as a result of the removal of select existing licensed and produced content from its platform.

Roku now projecting total net revenues of $835 million to $875 million and an EBITDA loss of between $20 million and $40 million in the third quarter.