Roku (ROKU) stock gains on plans to cut 200 jobs, 6% of workforce

March 30, 2023 6:38 AM EDT

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Shares of Roku (NASDAQ: ROKU) are trading over 3% higher in pre-market Thursday after the video-streaming company said it will cut around 200 jobs or 6% of its total workforce.

The restructuring plan was approved yesterday, Roku said in a filing. The aim is to “lower the Company’s year-over-year operating expense growth and prioritize projects that the Company believes will have a higher return on investment.”

Moreover, Roku said it will leave certain office facilities to cut more costs. It estimates that it will incur charges of $30-35 million, out of which the majority will be incurred in the first fiscal quarter.

“The implementation of the headcount reductions, including cash payments, will be substantially complete by the end of the second quarter of fiscal 2023,” Roku said in a filing.

Roku announced similar job cuts in November when it slashed its workforce by 200 jobs.

Roku shares are up 57% year-to-date (YTD).

By Senad Karaahmetovic

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