GoPro Reduces Workforce By 15%, Cuts Over 200 Jobs
GoPro has announced a major company-wide restructuring that will cut 15% of its workforce, including over 200 full-time positions.
GoPro has faced some serious battles this year: a class-action lawsuit claiming the company violated federal securities laws, unimpressive sales, and, most recently, a full recall of the Karma drone. After a dizzying year of controversy and product failures, the company's stock dropped 44% in 2016.
So it may come as little surprise that the tech company has decided to rethink its future and enact a company-wide restructuring to bring yearly operating expenses down to $650 million (from $735 million). In a press release, GoPro announced that Tony Bates will be stepping down as the president of the company at the end of the year. GoPro plans on reducing costs with facility reductions and the closure of its entertainment division. Furthermore, over 200 full-time jobs will be eliminated, effectively cutting their workforce by 15%.
From the press release:
GoPro also announced a company-wide restructuring that will reduce full-year 2017 non-GAAP operating expenses to approximately $650 million (GAAP: $735 million) and achieve its goal of returning to non-GAAP profitability in 2017. The restructuring includes the closure of its entertainment division, facilities reductions, and the elimination of more than 200 full-time positions plus the cancelation of open positions for a reduction in force of approximately 15 percent.
It'll be interesting to see what the future holds for GoPro, but considering the fact that the company saw its shares jump to about 4% yesterday morning directly following the announcement, the outlook appears to be somewhat optimistic.