Benzinga - Roku, Inc. (NYSE: ROKU) shares are trading lower after the company announced a restructuring, which will include charges of $30 million to $35 million.
What to Know: On Wednesday, Roku released an SEC filing detailing its restructuring plan aimed to "lower the company's year-over-year operating expense growth." The company expects this restructuring plan, which includes layoffs and exiting or subleasing unused office space, to affect 200 employees, around 6% of its workforce.
Roku expects to incur non-recurring expenses in the range of $30-$35 million associated with the plan, primarily through severance payments, notice pay, employee benefit contributions, and costs related to exiting and subleasing unoccupied office space. Roku expects the majority of the associated charges to be incurred throughout the first quarter of fiscal 2023, barring any regulatory conflict. The company expects the implementation to be completed by the second quarter of 2023.
Roku is the leading streaming platform in the U.S. by hours watched with 87.4 billion hours of content streamed in 2022. The firm's eponymous operating system is used not only in Roku's own hardware but in cobranded TVs and soundbars.
According to data from Benzinga Pro, Roku shares were down 4.04%, trading at $61.33 at the time of publication. The stock has a 52-week high of $139.54 and a 52-week high of $38.27.
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