December 1, 2016

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.      

Your Comment

5 Comments

It's 2016 and the color-science and the 8-bit picture quality on the GoPros still screams 2008 youtube. Time to start working with Sony on developing a custom look and feel for the chip and seriously thinking about the in-camera color processing.

Kineraw had a super 8mm (kineraw s8p) digital camera that created fantastic footage at roughly same sensor size. Check Dan Hudgins on vimeo.

So a great output at those dimensions is possible.

December 1, 2016 at 11:50AM

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Kokles
155

This doesn't surprise me. After having 3 different models of GoPro cameras die prematurely within 6 months of their warranties expiring, I will never purchase a GoPro camera ever again. I had two cameras overheat and die and the other camera just flashes on and off for an unknown reason. I kept thinking their newest product would be more reliable then the last one and I was wrong. It doesn't surprise me to hear stories of their drones dying and falling from the skies. My cameras were never abused or mishandled. They were not used in extreme sports or underwater. I just put them each on an egg timer and used them to capture time-lapses.

I think GoPro is a company that got extremely lucky. They had the right product at the right time and all the other camera manufacturers ignored the market. That is not the case now, and I think the days of GoPro sweeping the floor with this segment are over.

December 1, 2016 at 1:33PM

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Derek Doublin
Director, Cinematographer, Large Scale Artist
760

This is why I like capitalism. If Go Pro dies, something better will take it's place. Or if Go Pro competes with their competitors and makes better quality cameras for cheaper, they'll be back on top.

December 1, 2016 at 2:13PM

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Logan McNay
Director
270

I don't seem to share to death of GoPro mentality as many do. They have served me well over the years and i love the Hero 5, and the competition simply has not remotely caught up. Sad that the drone has issues, but to be fair, I HAD a DJI Phantom 3 that fell from the sky after about 6 months destroying itself on impact and DJI said .... "wait for it" .... NOTHING. So, given that every reality show, adventure show, Carpool Karaoke and movies like The Martian and Captain Phillips, to name a few, use/used GoPros... if you still think they are toys as opposed to tools, maybe a quick look in the mirror might reveal what's holding you back. Just sayin

December 1, 2016 at 2:33PM

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"..and the competition simply has not remotely caught up..."
Oh, Come on..you must be kidding (or living in a gopro marketing bubble)
Sony action cameras have waterproofing out-of-the-case and overlays since YEARS, and their Optical Stabilization is superior to gopro's (not talking about bitrate, 100 vs 60).
Even Garmin with their latest offering is at worst on par with the GP5. Only the session (but with big drawback like a fixed battery) has some valid points.

December 1, 2016 at 8:51PM

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Matt
94