Roku (ROKU) to Cut Additional 10% Staff

In light of Roku (NASDAQ: ROKU) continuing evaluation of its operations, on September 5, 2023, the Company determined to implement additional measures to continue to bring down its year-over-year operating expense growth rate by consolidating its office space utilization, performing a strategic review of its content portfolio, reducing outside services expenses, and slowing its year-over-year headcount expense growth rate through a workforce reduction and limiting new hires, among other measures. The workforce reduction is expected to impact approximately 10% of the Company’s employees. The Company expects to record a restructuring charge related to the workforce reduction, primarily consisting of severance and benefits costs, in a preliminary estimated range of $45 million to $65 million. This range excludes charges related to the potential impairment of office facilities and content, which are described in Item 2.06 below. The Company expects that the majority of the restructuring charge will be incurred in the third quarter of fiscal 2023. The Company further anticipates that the implementation of the workforce reduction, including cash payments, will be substantially complete by the end of the fourth quarter of fiscal 2023.

The workforce reduction is subject to legal requirements that vary by jurisdiction, which may extend this process beyond the fourth quarter of fiscal 2023 in certain cases. The charges that the Company expects to incur are subject to a number of assumptions, including legal requirements in various jurisdictions, and the actual restructuring charge may differ materially from the estimated range disclosed above.

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