Today Roku announced a new round of layoffs that will affect another 200 employees or about 6% of Roku’s workforce. Roku says it will also cut back on its office facilities by exiting leases and subleasing other spaces Roku currently doesn’t need.
With these changes, Roku says it will “prioritize projects that the company believes will have a higher return on investment.” It is unknown precisely what projects Roku plans to focus on, but it is clear that Roku is tightening its budgets.
Roku, like many companies, is facing a drop in ad revenue. This comes as many companies are cutting back on ad spending, and the fact that there are more places than ever to advertise.
Roku is also seeing skyrocketing expenses as its operating expenses soared up 71% in the 4th quarter of 2022. This news came as Roku’s revenue declined about 5% in the first quarter of 2023.
For Roku customers, these changes shouldn’t have any impact on their experience. Well, Roku has not announced what positions will be cut, but from the wording of the press release, Roku seems to be cutting back on new projects.