Streaming device maker Roku to cut 200 jobs in second round of layoffs
(Reuters) - Roku Inc will lay off 6% of its workforce, or 200 employees, in its second round of job cuts, the U.S. streaming device maker said, sending its shares up nearly 3% before the bell on Thursday.
In a bid to lower expenses, the company also decided to exit and sub-lease office facilities that it did not currently occupy.
Roku had in November cut 200 jobs in the United States, where companies, led by technology giants such as Meta Platforms and Amazon.com Inc, are bracing for a potential economic downturn amid rising borrowing costs around the world.
Job cuts in U.S. tech sector hit 63,000 in the first two months of the year, according to data from Challenger, Gray & Christmas Inc.
Roku, which had about 3,600 full-time employees as of Dec. 31, expects to incur charges of between $30 million and $35 million related to the restructuring.
Majority of the restructuring charges will be incurred in the first quarter of fiscal 2023, while the job cuts will be completed by the end of the second quarter, the company said.
Earlier this month, Roku said it had about $487 million, or 26% of its cash and cash equivalents, in deposits with SVB Financial Group, which was closed down by California banking regulators.
(Reporting by Tiyashi Datta in Bengaluru; Editing by Arun Koyyur and Shweta Agarwal)