Roku reports workforce reduction, measures to bring down y/y operating expenses

Roku said in a regulatory filing that in light of its continuing evaluation of its operations, on September 5, 2023, the company determined to implement additional measures to continue to bring down its year-over-year operating expense growth rate by consolidating its office space utilization, performing a strategic review of its content portfolio, reducing outside services expenses, and slowing its year-over-year headcount expense growth rate through a workforce reduction and limiting new hires, among other measures. The workforce reduction is expected to impact approximately 10% of the company’s employees. The company expects to record a restructuring charge related to the workforce reduction, primarily consisting of severance and benefits costs, in a preliminary estimated range of $45M-$65M. The company expects that the majority of the restructuring charge will be incurred in the third quarter of fiscal 2023. The company further anticipates that the implementation of the workforce reduction, including cash payments, will be substantially complete by the end of the fourth quarter of fiscal 2023.