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Roku to cut 200 positions in the US in response to economic downturn

Daniel Radcliffe plays Weird Al in Weird: The Al Yankovic Story

Roku is the latest media company to feel the strain of a challenging economic environment, with the streaming platform set to eliminate around 200 positions in the US.

The cuts, which represent around 5% of its total workforce, were disclosed in a filing with the US Securities and Exchange Commission (SEC). The company did not specify which departments would be impacted.

Roku said it expects to incur charges of US$28m-31m as a result of the job cuts. It added that the majority of the restructuring charges would be incurred before the end of the fiscal year, and the implementation of the reductions would be complete in the first quarter of fiscal 2023.

Roku has looked to expand its presence in the AVoD market over the past 18 months with the launch of a slate of originals on The Roku Channel. Its original titles include Weird: The Al Yankovic Story, which debuted earlier this month.

Like many others in the media space, Roku has endured a tough 2022. The company’s stock price has dropped from around US$230 per share at the turn of the year to US$56m as of Thursday.

Across the board, the likes of Warner Bros Discovery, Paramount Global and Netflix have made cuts, while tech giants including Amazon and Meta are also in the midst of thousands of job cuts in response to a tough economic climate.

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