Roku to Cut About 10% of Its Workforce as It Ups Quarter Sales Expectations and Shares Soar, Again
Roku is cutting about 10% of its workforce, or 360 people, and it will limit new hiring as it cuts costs to stem a series of quarterly losses.
The streaming platform also said in a regulatory filing Wednesday that it expects 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 doubled since the start of the year, gained 11% before the opening bell.
Roku Inc. anticipates a restructuring charge of $45 million to $65 million related to the job cuts. The charge will mostly include severance and benefits costs, with the majority of the charge expected to occur in its fiscal third quarter.