Streaming video platform Roku is set to undergo another round of layoffs, the company disclosed in a securities filing Thursday morning.
Roku says that it will cut another 200 jobs, or about 6 percent of its workforce, in the coming days and weeks. These would be the second round of layoffs at Roku in about four months, with the company previously having cut about 200 jobs last November, citing economic conditions.
The company expects to take a $30 to $35 million charge associated with the layoffs, mostly tied to severance payments and related costs. Roku also says that it will “exit and sublease, or cease use of, certain office facilities that the Company does not currently occupy.”
It is not clear what offices that refers to; however, the company last year signed a significant deal to take over eight floors in a Times Square office tower, and also inked expansion deals in California and Chicago.
Roku says that the new cuts are meant “to lower the Company’s year-over-year operating expense growth and prioritize projects that the Company believes will have a higher return on investment.”
The cuts also come as the video advertising market remains challenged, with essentially all major tech and TV companies reporting slower ad spend, although a few have been hopeful that the ad market has hit bottom. Earlier this week Magna released its forecast, projecting 3.4 percent ad growth in 2023, lowering its previous forecast, but still expecting some growth this year.
Roku reported better than expected Q4 earnings last month, though its losses ballooned thanks to the slowing economy.
