According to recent reports, Roku has become the most recent company to reduce its staff with 200 job cuts. The company has taken this decision because of the economic meltdown and the rise in inflation. Read the entire article to learn more about this news piece.
About the job cuts
The company claims that the layoffs would cut down staff expenses by about 5%. Roku’s shares have fallen more than 20%. This company does not happen to be the first to have indulged in layoffs. Big giants like Meta, Snapchat, etc, have also adopted the same strategy in order to cut down on losses.
“As we enter the holiday season, we expect the macro environment to further pressure consumer discretionary spend and degrade advertising budgets, especially in the TV scatter market,” Roku Chief Executive Officer Anthony Wood said in a letter to investors.”We expect these conditions to be temporary, but it is difficult to predict when they will stabilize or rebound.”
“Roku’s growth will be disrupted by a recessionary environment because advertising budgets, on the whole, will see cuts, while at the same time TV ad budgets continue to see migration to digital,” Third Bridge analyst Jamie Lumley said.
“We will continue to slow headcount and operating expense growth in response to the macro environment,” Wood added.
For people who do not have any clue about the company, Roku is a streaming platform founded by Anthony Wood. The aim of the company is to give people content that resonates with them. It wants people to be able to connect with the content. This streaming platform is extremely popular in countries like Mexico, the United States, and Canada. Roku Channel is a free streaming platform that also has advertisements and is has a lot of diverse content. People can easily find the content that they love and watch it all day. The option of watching paid content is given by the channel as well. People who are interested in buying a paid subscription can easily do so as it is super affordable. With this streaming platform, any TV can be converted into a spectacular streaming experience. People can bring a major change in their TV experience by introducing this in their homes.
About Anthony Wood
Roku came into existence because of Anthony Wood, who happens to be the founder of this platform. Roku was launched by him in the year 2002 and since then, this platform has seen immense success and popularity across different countries.