Action camera maker GoPro is set to reduce its workforce by around 270 employees in an effort to reduce operating costs by about $200 million for 2017, the company announced on Wednesday. These cuts include a combination of current employees and open positions.
This is not an entirely unexpected move from the company though. Due to poor financials, GoPro has been forced to cut jobs on two other occasions since the beginning of 2016. In January 2016 the firm laid off 7 per cent of its workforce, and in November it cut 15 per cent of its employees, shutting its entertainment division and losing president (and former Skype boss) Tony Bates in the process. The company hasn’t said what areas of its business will be affected by this round of cuts.
GoPro operated at a $373 million loss in 2016 due to, among other factors, production delays on the new Hero 5 camera and the recall of the Karma drone. The firm’s stock price hit an all-time low in the past week, though it increased by more than 10 per cent following the job cut news.
While it’s not in the best of financial states, GoPro is still selling cameras and sold 2 million units in the fourth quarter of 2016, making it the company’s second best quarter ever in terms of revenue. Head honcho Nick Woodman confirmed in February that new Hero 6 cameras are set for release later in 2017. The company will hope that its good sales fortunes combined with the money it is saving in these cuts will improve GoPro’s financial situation.