Go­Pro slashes 15% of work­force

The Denver Post - - BUSINESS - By Dow Jones Newswires

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.

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