- Roku (ROKU) announced that it would be letting go of roughly another 200 employees, accounting for 6% of its workforce, in order to reduce costs. Additionally, the company plans to reduce the number of office facilities used, leading to estimated charges of $30-35 million, which will mostly be recorded in the first quarter of the fiscal year.
- In November, Roku laid off 200 employees in the U.S. as tech titans like Meta and Amazon are taking precautions for an impending economic downturn due to the increasing cost of borrowing globally. Earlier this month, Roku disclosed that it had roughly $487 million, equating to 26% of its reserves and cash equivalents, deposited with SVB Financial Group, which was shut down by California's banking regulators.
Why it matters
Roku has joined Electronic Arts' decision to cut staff in order to manage costs, as the latter has declared that 6% of its employees will be laid off. This follows the trend of other companies in the tech industry that have opted to reduce their workforce.
