| Item 2.05 |
Costs Associated with Exit or Disposal Activities.
|
On November 17, 2022, Roku, Inc. (the “Company”) approved a
plan to reduce the Company’s headcount expenses by a projected 5%
to slow down the Company’s 2023 operating expense growth rate due
to current economic conditions. This will affect approximately 200
employee positions in the United States.
The Company estimates that it will incur non-recurring charges of approximately
$28 to $31 million in connection with the headcount
reductions, primarily consisting of severance payments, notice pay
(where applicable), employee benefits contributions and related
costs. The Company expects that the majority of the restructuring
charges will be incurred in the fourth quarter of fiscal 2022 and
that the implementation of the headcount reductions, including cash
payments, will be substantially complete by the end of the first
quarter of fiscal 2023.
Potential position eliminations are subject to legal requirements
that vary by jurisdiction, which may extend this process beyond the
fourth quarter of fiscal 2022 in certain cases. The charges that
the Company expects to incur are subject to a number of
assumptions, including legal requirements in various jurisdictions,
and actual expenses may differ materially from the estimates
disclosed above.
Forward-Looking
Statements
This Current Report on Form 8-K contains “forward-looking”
statements that are based on the Company’s beliefs and assumptions
and on information currently available to the Company on the date
of this Current Report on Form 8-K. Forward-looking statements include
all statements that are not historical facts and can be identified
by terms such as “anticipate,” “believe,” “continue,” “could,”
“design,” “estimate,” “expect,” “may,” “seek,” “should,” “will,”
“would” or similar expressions and the negatives of those terms.
Forward-looking statements may involve known and unknown risks,
uncertainties and other factors that may cause the Company’s actual
results, performance or achievements to be materially different
from those expressed or implied by the forward-looking statements.
These statements include, but are not limited to, the number of
employee positions that will be affected; the estimate and timing
of the charges that will be incurred; and the impact on the
Company’s operating expense growth rate. Except as required by law,
the Company assumes no obligation to update these forward-looking
statements publicly, or to update the reasons actual results could
differ materially from those anticipated in the forward-looking
statements, even if new information becomes available in the
future. Further information on factors that could cause the
Company’s actual results to differ materially from the results
anticipated by the Company’s forward-looking statements is included
in the reports the Company has filed with the U.S. Securities and
Exchange Commission, including the Company’s Quarterly Report on
Form 10-Q for the quarter
ended September 30, 2022 and Annual Report on Form
10-K for the year ended
December 31, 2021. All information provided in this Current
Report on Form 8-K is as of
November 17, 2022, and the Company undertakes no duty to
update this information unless required by law.