Roku to cut 200 U.S. jobs, citing weak ad market

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Roku, the San Jose based tech company that rapidly expanded during the pandemic, on Thursday said that it plans to cut 200 U.S. jobs, citing “current economic conditions.”

11,000 employees — or 13% of its workforce — and Amazon plans to eliminate as many as 10,000 jobs.

In a letter to shareholders earlier this month, CEO Anthony Wood discussed the difficult climate. Ad spending on Roku’s platform grew more slowly than its earlier forecast in part because of weakness in the TV ad market, Wood wrote. “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,” Wood said in a letter to shareholders this month. “We expect these conditions to be temporary, but it is difficult to predict when they will stabilize or rebound.”Disney+ is growing, but Disney’s streaming business is losing billions of dollars a year.

Wood said the company expected its overall fourth-quarter revenue to be $800 million, down from $865.3 million in the fourth quarter of 2021.

Roku also sells hardware, including connected TV devices and smart home products like security cameras.

 

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