Terminating around 200 staff, Roku encountered a business loss of US$249.9 million in Q4, widening from the previous output of US$147 million in the earlier quarter.
Heaptalk, Jakarta — A streaming device maker, Roku, plans to perform a restructuring step for its employees, impacting a layoff resolution for its 200 workforces, or around 6% of the entire team. As it is known, Roku’s layoff step is the second phase, following its earlier job termination of 200 employees in the United States as of November last year.
In the first job-cutting round, the company experienced a significant business slowdown in the third quarter of last year. On the other hand, the current economic turbulence has also necessitated Roku to execute this layoff due to the company needing to retard its operating expenses.
Cited in the Verge, Roku’s spokesperson admitted that this job-cutting decision is a part of the efficiency move to low Roku’s year-over-year operating expense growth and prioritize projects that this technology company believes will have a higher return on investment. This restructuring determination is expected to be finished by the end of the second quarter of this year.
Furthermore, this United States-based tech company has recorded a business diminishment of its streaming sales, influencing other aspects of its business operations. Besides, this company has diversified into multiple fields, such as offering an expanded range of hardware, growing its advertising business, and producing original content. Nevertheless, this innovation has not resolved a difficult period for the industry.
In February, the company recorded its total net revenue worth US$867.1 million for Q4 2022. Previously, Roku predicted its business revenue would come in at around US$800 million, while analysts forecasted a decline of 7% year-over-year to US$804.19 million.
During the same period, this technology company also announced its active accounts globally up to 70 million accounts in 2022, enhancing a 65.4 million in Q3. However, regarding losses, Roku noted a business loss of US$249.9 million, widening from the previous output worth US$147 million in the earlier quarter.
Based on Reuters, Roku had around 3,600 employees at the end of 2022. The company is one of many tech companies to have terminated its staff, following a massive layoff wave executed by several giant companies in the United States, such as Disney, Netflix, Google, Amazon, Microsoft, and Meta.
