Roku Inc., the maker of set-top boxes and TV software consumers use to watch Netflix Inc. and other streaming services, jumped after announcing plans to cut about 300 workers or 10% of its workforce, consolidate office space and reduce its content portfolio.
(Bloomberg) — Roku Inc., the maker of set-top boxes and TV software consumers use to watch Netflix Inc. and other streaming services, jumped after announcing plans to cut about 300 workers or 10% of its workforce, consolidate office space and reduce its content portfolio.
The San Jose, California-based company will also limit new hires as part of an effort to slow its growth in operating expenses, it said in a filing Wednesday. Roku expects to record charges of $45 million to $65 million tied to the job cuts, $160 million to $200 million from ceasing the use of office facilities and $55 million to $65 million from removing licensed content from its streaming platform.Â
Roku is among the tech and media companies that have faced the prospect of weaker sales from a broad pullback in advertising. The company warned last year that it expected a tough economy to pressure consumers and advertiser spending. In March, it said that it would cut about 200 employees, or 6% of its workforce, as part of a restructuring.
Read More: Roku Craters on Weak Outlook, Adding to Advertising Worries
The shares gained almost 12% to $93.58 as the markets opened in New York on Wednesday. The stock has more than doubled so far this year.
Excluding the expected charges, Roku raised its guidance for the third quarter. It now expects total net revenue of $835 million to $875 million from about $815 million previously. Its adjusted loss before interest, taxes, depreciation and amortization is seen at $40 million to $20 million for the third quarter.
(Updates with number of employees affected by the latest reduction in first paragraph.)
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