In response to the economy’s slowdown, the television streaming service Roku plans to cut 200 jobs in the US.

Roku is joining other internet companies like Amazon, Netflix, and Meta by terminating staff as a result of a weak third-quarter financial report.

The weakening of advertising revenue for streaming platforms was blamed for the company’s dismal financial performance.

READ MORE: LATEST LAYOFFS HIT WARNER BROS DISCOVERY’S SPORTS UNIT

In 2022, Roku’s stock crashed, and it has dropped by about 80 percent this year alone.

The advertising budgets that businesses Roku had counted on for revenue boosts have been impacted by persistent record high inflation and a high cost of living.

Other streaming networks’ third-quarter earnings, notably YouTube, showed a comparable decrease in revenue.

READ MORE: WARNER BROS. TELEVISION CUTS 125 JOBS IN THE LATEST ROUND

Roku said in a company statement on Thursday, November 17: “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 percent, to slow down our OpEx growth rate,”

“This will affect approximately 200 employee positions in the U.S. Taking these actions now will allow us to focus our investments on key strategic priorities to drive future growth and enhance our leadership position,” the company added.

About seven percent of Roku’s total employment was affected by the most recent layoffs. The business, which operates globally in 13 countries, had close to 3,000 employees on its payroll in the previous year.

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Roku’s shares dropped more than 3 percent during pre-market trading on Thursday morning as a result of the downsizing news.

Roku claims in an SEC filing that the charges for severance payments and employee benefits contributions will range from $28 million to $31 million as a result of the layoffs.

Source: Fox Business

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