US streamer Roku set to make 200 more lay-offs, prioritises RoI

Roku’s parody biopic Weird: The Al Yankovic Story stars Daniel Radcliffe

Streaming company Roku on Thursday said it plans to cut around 200 jobs, the equivalent of 6% of its total workforce, as it continues to implement cost-cutting measures in response to a slow ad market. 

The company estimated the restructuring plan would result in charges of between US$30m and US$35m as a result of severance payments, notice pay, employee benefits contributions and other related costs. 

The plan, which represents the company’s second lay-off announcement in the space of four months, will reduce year-over-year operating expense growth and allow it to “prioritise projects that [it] believes will have a higher return on investment,” according to Roku.

The US company did not specify which departments would be affected by the cuts, but said they would be completed by the end of the second quarter. 

In November, Roku also announced plans to reduce its headcount by 200 as it looked to find savings across its business.

On the content side of its business, there have been several changes following the appointment of former Fox Entertainment CEO Charlie Collier as president of Roku Media last year. Since then, David Eilenberg has been promoted to VP and head of content for Roku Media. 

Most recently, the content commissioning and acquisitions team has been shaken up in the wake of the departure of former scripted head Colin Davis, who joined Sony Pictures Television Studios as executive VP of comedy development.

Key original releases for AVoD platform The Roku Channel in recent months include Weird: The Al Yankovic Story, which premiered in the fall.