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More Job Cuts Coming to Tech as ROKU Plans to Cut Staff by 5%

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Roku, a leading provider of streaming devices and services, has announced plans to cut approximately 5-7% of its workforce, or about 200 employees. The company cited the need to become leaner and more efficient as the reason for the layoffs. This news comes as Roku’s stock price has struggled, with the company’s shares losing about three quarters of their value this year.

This move is part of a larger trend of tech companies cutting their workforce in response to the economic challenges brought on by the COVID-19 pandemic. Other companies that have implemented major layoffs in 2021 include Lyft (700 employees), Twitter (3,700 employees), Amazon (10,000 employees worldwide), Meta (11,000 employees), Scripe (1,100 employees), Redfin (862 employees or 13% of its workforce), Salesforce (hundreds of employees), Microsoft (1,000 employees), Robin Hood (23% of its employees), and Coinbase (1,100 employees).

The impact of these layoffs on the economy and on individual workers cannot be understated. Unemployment rates are on the rise, and the ad industry in particular is facing challenging times. Some experts have even suggested that Roku’s stock price could continue to decline, although it is possible that the company’s stock could bottom out and stabilize at a lower level.

For traders and investors, it may be wise to avoid companies that are struggling, such as Roku, and instead consider more reliable stocks or companies with a strong financial foundation. It is important to thoroughly research and carefully consider any investment decisions, especially in times of economic uncertainty.

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