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Streaming device maker Roku to cut 200 jobs in second round of layoffs

Published 03/30/2023, 07:27 AM
Updated 03/30/2023, 12:21 PM
© Reuters. FILE PHOTO A video sign displays the logo for Roku Inc, a Fox-backed video streaming firm, in Times Square after the company's IPO at the Nasdaq Market in New York, U.S., September 28, 2017. REUTERS/Brendan McDermid/File Photo
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(Reuters) - Roku (NASDAQ:ROKU) Inc will lay off 6% of its workforce, or 200 employees, in its second round of job cuts, the U.S. streaming device maker said, sending its shares up nearly 3% before the bell on Thursday.

In a bid to lower expenses, the company also decided to exit and sub-lease office facilities that it did not currently occupy.

Roku had in November cut 200 jobs in the United States, where companies, led by technology giants such as Meta Platforms and Amazon.com Inc (NASDAQ:AMZN), are bracing for a potential economic downturn amid rising borrowing costs around the world.

Job cuts in U.S. tech sector hit 63,000 in the first two months of the year, according to data from Challenger, Gray & Christmas Inc.

Roku, which had about 3,600 full-time employees as of Dec. 31, expects to incur charges of between $30 million and $35 million related to the restructuring.

© Reuters. FILE PHOTO A video sign displays the logo for Roku Inc, a Fox-backed video streaming firm, in Times Square after the company's IPO at the Nasdaq Market in New York, U.S., September 28, 2017. REUTERS/Brendan McDermid/File Photo

Majority of the restructuring charges will be incurred in the first quarter of fiscal 2023, while the job cuts will be completed by the end of the second quarter, the company said.

Earlier this month, Roku said it had about $487 million, or 26% of its cash and cash equivalents, in deposits with SVB Financial Group, which was closed down by California banking regulators.

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