In the latest belt-tightening move in the TV industry, streaming giant Roku said it would be eliminating about 200 employee positions.
“Due to the current economic conditions in our industry, we have made the difficult decision to reduce Roku’s headcount expenses by a projected 5%, to slow down our OpEx growth rate,” the company said in a statement. “This will affect approximately 200 employee positions in the U.S. Taking these actions now will allow us to focus our investments on key strategic priorities to drive future growth and enhance our leadership position.”
Earlier this month, during its third-quarter earnings report, Roku said that platform revenue — largely from ad sales — dropped to $670.4 million from $673.2 million in the second quarter.
The company’s streaming device business is also under pressure.
Overall company revenue fell $3 million in the quarter.
The news sent the company’s stock down 20%.
Other companies, including Warner Bros. Discovery, have noted that the ad market has turned down, something that will make it tougher for struggling media companies to make their fourth-quarter numbers without additional cutbacks. ■
Jon has been business editor of Broadcasting+Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.
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