Roku stock bounce on further cuts
September 6, 2023
Roku plans to reduce its workforce by approximately 10 per cent as part of its ongoing efforts to control its annual operating expense growth rate. The restructuring is expected to result in a charge ranging from $45 million (€41.9m) to $65 millio, the company has said. Roku shares rose 8 per cent in pre-market trade.
The majority of these charges will come in the third quarter of the year, and the workforce reduction is anticipated to be substantially completed by the end of the fourth quarter, said the company. Roku had previously announced a broader restructuring plan in March, which involved cutting about 6 per cent of its workforce.
The company now expects its third-quarter net revenue, excluding restructuring, to be in the range of $835 million to $875 million, compared to previous guidance of $815 million. The company anticipates its adjusted EBITDA for the third quarter, excluding restructuring effects, to range from -$40 million to -$20 million.