Video streaming company Roku to cut 10% workforce, HR News, ETHRWorld

By Yuvraj Malik

Roku on Wednesday trimmed its adjusted operating loss forecast for the third quarter and said it would lay off 10% of its staff as well as cut down on some office space, sending the company’s shares 12% higher.

Roku also raised its quarterly revenue forecast, a sign that advertising spending was continuing to improve thanks to cooling inflation and hopes of a pause in interest rate hikes.

The streaming device maker, which has its own ad-supported channel, in February said it aims to turn a profit in 2024 as it strives to drastically cut costs.

Roku, which faces pressure from larger streaming firms, had laid off about 400 employees in two cycles since November. It had about 3,600 full-time employees as of December.

The San Jose, California-based company now expects adjusted core loss in the range of $40 million to $20 million for the quarter ending September, compared with its earlier forecast of $50 million.

Roku forecast total net revenue to be between $835 million and $875 million, higher than its previous projection of $815 million.

Roku also said it would consolidate offices, reduce expenses on outside services and review its content portfolio.

It expects to take on $160 million to $200 million in impairment charges related to the closure of some…