Roku on Thursday said it will eliminate 200 jobs, or about 5% of its workforce, citing “economic conditions in our industry.”
The streaming platform’s volatile shares dropped on the news, a reversal from the typical Wall Street reaction to cuts in labor expenses. Roku gave up 3% to $55.15 in morning trading, as the broader market indices slipped around 1%. The stock hit a recent high of $61.63 on Friday, still well off the high of $266.05 seen in December.
“Taking these actions now will allow us to focus our investments on key strategic priorities to drive future growth and enhance our leadership position,” Roku said in a short statement.