GoPro to cut 15% workforce in restructuring effort
November 30, 2016 11:45 PM NPT
GoPro has announced the company will cut 200 jobs, about 15% of its global workforce. The company says this will reduce its 2017 non-GAAP operating expenses to about $650 million and will help the company fulfill CEO Nick Woodman’s stated goal of returning the company to profitbility in 2017.
Company president Tony Bates is stepping down from his position at the end of 2016, saying in a released statement, “Today GoPro has a solid leadership team deeply focused on its core business and profitability.”
The news came alongside a press release touting GoPro Black Friday sales were up 35% year-over-year at US retailers.
GoPro’s stock ticked up slightly in pre-market trading on the news.
The embattled camera maker is facing a headwind as it attempts to stay afloat. For one, the market is changing as cell phones are getting more durable and capable of surviving GoPro-type activities. The company needs to convince consumers that they still need a GoPro. The market is also now flooded with activity cameras that are available for a fraction of the price of GoPro camera. For both these reasons, GoPro is trying to shift away from being just a camera company to becoming a media company.