Roku to cut 200 U.S. jobs, citing weak ad market
Roku Inc. said it plans to close its headquarters office in Pittsburgh, Pennsylvania, in order to cut 200 jobs as the company shifts its focus to overseas markets and seeks to “expand into new areas where we believe we can gain market share.”
In a statement, Roku said a recent report from market research firm iMarketer indicates that while it remains the leader in the smart TV market, it will have a smaller share of total U.S. TV revenues in 2013, down from about 28% in 2012.
“With the market shifting to more connected devices, and cord-cutters increasing their share of homes, Roku’s sales and marketing efforts are directed to these customers,” said Roku Vice President of Marketing Steve Ritchie in a blog post.
Roku said it will be looking at new opportunities in the international marketplace and that it will be looking to expand into new areas where it believes there is more opportunity to gain market share.
“We are committed to increasing Roku’s share of global TV revenues as the company continues to focus on creating new, global opportunities in every area where we believe we can gain market share,” Ritchie said.
“Our sales and marketing efforts are directed to these customers, and will be focused on delivering even higher quality, value and service experiences that help them to stay connected and entertained,” he added.
Roku noted in its announcement that its global market share has remained consistent over the past few years and that although the company’s revenues are declining, it expects to earn about $1.2 billion this year and about $2 billion in 2013.
Roku is expected to make a filing with the Securities and Exchange Commission related to the possible cuts with news.
Roku and its products have been in the headlines of this year’s news cycle, and with an expected public filing on Wednesday, the battle in the ad market between both companies is just