Smart TV manufacturer Roku, Inc. (ROKU) is seeing its shares rise after revealing plans to lay off 10 percent of its employees and raising its third-quarter guidance. Yahoo Finance Live Senior Reporter Alexandra Canal breaks down the regulatory filing and its timeline of previous layoffs over the past year.

This post was written by Luke Carberry Mogan.

Video Transcript

[AUDIO LOGO] JULIE HYMAN: Let's get a check on some movers that we are watching, Roku among them.

The shares are soaring almost 10% after the company announced it's going to be cutting 10% of its staff or about 300 workers.

Those layoff's the third round of job cuts the media company has undergone in less than a year.

The company is also going to be consolidating office space.

It is going to review its content portfolio, all in an effort to further trim costs.

BRAD SMITH: Yeah.

They said as a part of this, they expect to record a restructuring charge-- pretty typical-- related to the workforce reduction consisting of severance benefits costs as well.

This was put forward in a filing earlier today, and the cost of that is estimated to be in this range of $45 million to $65 million here for the company in Roku.

And they expect that the majority of this is going to be incurred actually in third quarter of fiscal 2023.

So that's when you can really expect this to show up in some of the company's quarterly financial statements as well.

JULIE HYMAN: It's interesting.

Excluding the charges related to this, it says it's actually going to make more than it expected in revenue that is.

For the third quarter revenue now, it's targeting $835 million to $875 million, it had been $815 million.

So doing this cutting even as the revenue seems to be improving here.

BRAD SMITH: Yeah.

It's interesting.

And we were taking a look at that year to date chart a moment ago, still holding onto gains of above 100% over the course of this year.

So at least for the company that's been able to kind of look across its offerings, make sure that as a hub on so many devices, television devices, or even building out its own content offering as well, and making some strategic acquisitions years back in that effort.

And now looking across where they can further their own relationship directly with the consumers, instead of having to just be that hub where other major streamers, whether it be Netflix or Hulu have that relationship with their end users as well.

I think Roku has been able to do well, at least according to some investors over the course of this year.

JULIE HYMAN: The stock has doubled this year, as you pointed out, but it was down 82% last year, and it was trading above $300 in 2020.

So just to give some perspective on the rebound it's seen, but after, you know, coming down to some lower levels than it was historically.