Roku said today (Nov. 17, 2022) 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 and Snap 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. read more
Roku, which blamed “current economic conditions” for the cuts, had 3,000 full-time employees in 13 countries as of Dec. 31 last year.