Roku becomes latest firm to reduce staff with 200 job cuts

Roku Inc said on Thursday it would cut 200 jobs in the United States, becoming the latest tech company to lay off workers amid an economic slowdown and decades-high inflation.

Tech companies including Meta Platforms Inc and Snap Inc have reduced staff this year as they grapple with a slowdown in growth and mounting costs.

The video-streaming device maker expects to book a charge between $28 million and $31 million in the fourth quarter related to the layoffs, mainly severance payments and associated costs.

Shares in Roku, which said layoffs would cut staff expenses by an estimated 5%, fell 2% in trading before the bell.

The company’s shares have plunged about 75% this year as inflation and the risks of a looming recession have cut ad-spending budgets.

Roku, which blamed “current economic conditions” for the cuts, had 3,000 full-time employees in 13 countries as of Dec. 31 last year. Reuters