GoPro slashes 15% of workforce
GoPro Inc. is cutting 15 percent of its workforce after attempts to branch out beyond its core business of action cameras failed to gain traction.
The company Wednesday announced several moves to reach profitability, including eliminating 200 of its 1,700 jobs, closing open positions and shuttering its entertainment division.
GoPro said its president, Tony Bates, is leaving the company.
The reboot will slash 2017 adjusted operating expenses to about $650 million, GoPro said. Through the first three quarters of 2016, the company logged $596 million in adjusted operating expenses. GoPro expects about $24 million to $33 million in fourth-quarter restructuring charges from the cost cuts.
Analysts believe GoPro could build a profitable company if it focused on its core camera business. In a news release, CEO Nick Woodman said demand for GoPro products is solid and the company is narrowing its focus to concentrate on its core business.
The moves announced Wednesday reveal the challenge GoPro has faced in branching out beyond its base —particularly as do-itall smartphones from Apple Inc. and Samsung Electronics Co. dampen demand for standalone cameras.