Roku (NASDAQ:ROKU) is set to trim its workforce by roughly 10% as part of its ongoing efforts to manage the growth rate of its annual operating expenses. As a result, shares jumped more than 9% pre-market today.
This move is projected to result in a cost of between $45 million and $65 million, according to a company filing. The majority of these expenses will be recorded in the third quarter of the year, and the reduction in staff is expected to be largely completed by the end of the fourth quarter, as confirmed by Roku.
Previously in March, Roku had announced a broader restructuring plan that entailed cutting approximately 6% of its workforce. As a result of these changes, the company now forecasts its third-quarter net revenue, excluding restructuring impacts, to fall within the range of $835 million to $875 million, up from its previous estimate of about $815 million.