GoPro to cut 200 jobs as part of restructuring
GoPro announced Wednesday it will slash 200 full-time jobs as part of a restructuring it says will help the high-definition camera maker to return to profitability next year.
GoPro says the restructuring plan will reduce operating expenses for the year to $650 million. GoPro is expected to incur as much as $33 million in charges for the restructuring.
Along with the job cuts, GoPro will also shutter its entertainment division and cancel any open positions at the company. Shares of GoPro are up nearly 3% in early trading Wednesday.
GoPro says sales of its cameras were "solid" during the week of Black Friday, one of the biggest shopping days of the year. Camera unit sales were up 35% year-over-year at top U.S. retailers, led by the launch of its Hero 5 camera. GoPro also says sales through its website between Thanskgiving and Cyber Monday were up 33%.
"Consumer demand for GoPro is solid and we've sharply narrowed our focus to concentrate on our core business," said GoPro founder and CEO Nicholas Woodman in a statement.
Once a massive hit for consumers seeking a reliable action camera, GoPro has struggled to find its next big device. The company launched the Hero 5 camera as well as a camera-friendly drone called Karma. However, the Karma was recalled earlier this month because a handful of the drones lost power during operation.
Last quarter, GoPro unveiled a loss of $104 million, a sharp decline from the $18.7 million profit a year ago.
Along with the restructuring, GoPro also announced president Tony Bates will leave the company by the end of the year.
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