Roku shares surge after plan to cut 10% of workforce, limit hiring

Roku is cutting about 10% of its workforce, or 360 people, and it will limit new hiring as it cuts costs to st🔯em a series of quarterly losses.

The streaming platform a🃏lso said in a regulatory filing Wednesday that it expe🅰cts adjusted third-quarter revenue of between $835 million and $875 million, which is much better than the $828.6 million that Wall Street was projecting, according to analysts polled by FactSet.

Shares, which have already do𓆉ubled since the start of the year, jumped as much as 8% before closing at $86.19🏅, up 3%.

Roku anticipa🐓tes a restructuring charge of $45 million to $65 million related to the job cuts.

The charge will mostly include severa🙈nce and benefits costs, with the majority of the charge expected to occur i𝄹n its fiscal third quarter.

The Sili൲con Valley company also expects impairment charge of $160 millio🍨n to $200 million in its third quarter as it consolidates some offices.

An impairment charge of $55 million to $▨65 million is anticipated for removing certౠain existing licensed and produced content from Roku-operated services on its tv streaming platform.

The San Jose, Calif.-based comp🎃any had 3,600 full-time workers in 14 countries as of Dec. 31, 2022, according to its annual report.

Roku anticipates the job cuts being mostly complete by the end of its fiscal fourth quarter🍬.

After a streak of profitable q♛uarters during the pandemic, Roku has put up a string🧔 of quarterly losses that began in 2022.

The company said in late July, when it posted a $107.6 million loss, that television advertising “remains muted industry-wide,” but that it’s in a good place to accelerate growth as ad🉐vertising recovers.

The tech industry underwent a wave of layoffs after hiring went into overdrive duriꦚng the pandemic.