Back in March, we learned that Roku planned to cut 8% of its workforce as part of a second round of layoffs as it looked to cut costs by $30 million to $35 million. Now, Roku will be going through another round with a plan to lay off 10% of its staff as it hopes to save up to $65 million.
In the Securities and Exchange Commission filing, Roku said:
In light of Roku, Inc.’s (the “Company”) continuing evaluation of its operations, on September 5, 2023, the Company determined to implement additional measures to continue to bring down its year-over-year operating expense growth rate by 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 workforce reduction is expected to impact approximately 10% of the Company’s employees. The Company expects to record a restructuring charge related to the workforce reduction, primarily consisting of severance and benefits costs, in a preliminary estimated range of $45 million to $65 million. This range excludes charges related to the potential impairment of office facilities and content, which are described in Item 2.06 below. The Company expects that the majority of the restructuring charge will be incurred in the third quarter of fiscal 2023. The Company further anticipates that the implementation of the workforce reduction, including cash payments, will be substantially complete by the end of the fourth quarter of fiscal 2023.
These cuts are expected to happen in the 3rd quarter of 2023, but Roku warns it could be extended into the 4th quarter. Roku, like many companies who rely on ad sales, has been hit hard by a soft ad market this year. In July, Roku released its 2nd quarter 2023 earnings and announced that it had added 1.9 million new active accounts. Now Roku has over 73.5 million active accounts using Roku Players and Roku TVs.
This comes as, over the weekend, we reported how Roku was testing a new home screen with folders, and more icons, continue watching, and more thanks to tips from our readers. Now Roku has started to roll out this new interface to its customers.
One of the features you will find on Roku’s home screen other than the new 4×4 look is a new continue watching row. This row will let you jump directly into shows you have been watching on supported devices like Disney+. You can also from there open a What to Watch section that will show shows you have been watching and suggest shows you should watch.
It is unlikely these layoffs will have any impact on Roku’s plans for the rest of 2023, including the new Roku home screen.