Roku Announces Layoffs and Strategic Content Portfolio Review
Roku is set to lay off approximately 10% of its workforce as part of a strategic review of its content portfolio. The media company anticipates incurring a restructuring charge between $45 million and $65 million due to the layoffs, which will affect around 300 employees. The staff reductions and associated charges are expected to be completed by the end of this year.
The announcement was made through an SEC filing, with Roku revealing estimated adjusted revenue and EBITDA for Q3. The company anticipates revenue between $835 million and $875 million and an EBITDA ranging from negative $20 million to negative $40 million for the same period. In Q2, Roku reported revenue of $847 million despite challenging market conditions, although it experienced an operating loss of $126 million.
In addition to the layoffs, Roku, headquartered in California, is conducting a strategic review of its content portfolio and reducing expenses related to external services. The company is also optimizing its office space utilization.
Roku is preparing to recognize an impairment charge in the range of $160 million to $200 million associated with the cessation of specific office facilities’ use. Additionally, it expects an impairment charge in the range of $55 million to $65 million linked to the removal of select licensed and produced content from its company-operated services on its TV streaming platform.
Charlie Collier, the former CEO of Fox Entertainment, assumed the role of President of Roku Media late last year. He received an unrealized compensation of $53 million in the final three months of 2022.
