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What happened: Roku announced in January that it had reached an all-time high 70 million active accounts worldwide, continuing a growth story that accelerated for the company and other big streaming platforms in 2020. Why it matters: Roku announced a new round of layoffs Thursday, impacting 6% of its workforce. As an ad-based business, the company has encountered similar problems as other ad-dependent media companies, demonstrating that its user growth has not insulated it from economic uncertainty. Where to see the impact: Roku revealed expanded operating losses of $249.9M in its most recent earnings report (compared to $147M the previous quarter). The layoffs will provide one response to that trend, but the company will now be tasked with maintaining growth in 2023 after implementing these changes. |
