Roku to cut 200 U.S. jobs, citing weak ad market
The first-ever job cuts at Roku, the maker of TV- and video-viewing software for smart TVs and smartphones, are due to start next month at the company’s San Antonio headquarters.
Roku says the cuts will be made as part of a restructuring effort that will result in its “further streamlining of its operations” that will “accelerate innovation and investment,” and help it to “meet or exceed the global growth expectations” for its smart-TV business and its other businesses.
The layoffs will be effective immediately.
Roku will continue to support its employees with all benefits, Roku said.
Roku CEO Anthony Wood told employees to report to work on Monday.
“This is a difficult time for Roku, and we will do everything we can to support you,” he said in a video posted to the company’s YouTube channel and read in full at the top of the company blog post
Roku has been trying to revive sales and attract more customers as its TV service has struggled for several years, but its ad-supported services have been even more hit by poor performance in the market. Its ad-supported apps for Apple and Amazon TV have both fallen behind rivals like Netflix and Amazon.
Roku said in a blog post last month that it was “not close” to meeting “our sales expectations,” and that a new strategy was needed.
Roku’s stock is up more than 22% so far this year, but it has lost more than 40% of its value over the past month. It’s been hit by falling sales and disappointing financials.
The job cuts are a sign of Roku’s efforts to make changes under a restructuring plan announced last month. The company laid off 300 people in the quarter that ended in October.
The job cuts are a sign of Roku’s efforts to make changes under a restructuring plan announced last month. The company laid off 300 people in the quarter that ended in October.
