Roku (NASDAQ:ROKU) is joining the collection of tech companies taking part in layoffs as they prepare for hard economic times.
According to a filing from the company, Roku will lay off a total of 200 employees. That represents roughly 7% of its workforce. The company cites the current economy as the reason behind the job cuts.
With these cuts, Roku will suffer between $28 million to $31 million in related charges. That will be realized in the fourth quarter, paving the way for savings in 2023. This should result in a reduction in operating expense growth next year.
Roku included the following statement in its filing, as reported by IndieWire.
“Due to the current economic conditions in our industry, we have made the difficult decision to reduce Roku’s headcount expenses by a projected 5%, to slow down our OpEx growth rate […] Taking these actions now will allow us to focus our investments on key strategic priorities to drive future growth and enhance our leadership position.”
Roku Layoffs Join a Growing List of Job Cuts
We’ve seen quite a few companies lay off employees lately as inflation continues to hamper the economy. Consumers are starting to slow spending, which is having a negative effect on the companies that rely on that spending.
ROKU stock is down 1.2% as of Thursday afternoon and is down 76% since the start of the year.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.