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GoPro cost-cutting restructuring will reduce global workforce by 15 percent

By Shawn Knight
Nov 30, 2016 at 3:30 PM
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  1. GoPro on Wednesday announced a company-wide restructuring program that it hopes will help it return to profitability in 2017. To realize that goal, the company said it will be shedding roughly 15 percent of its global workforce, or just over 200 full-time employees, and canceling some open positions.

    The latest cuts are in addition to the seven percent workforce reduction announced back in January.

    The action camera maker will also be closing its entertainment division and reducing the number of physical facilities it operates.

    GoPro said the moves will slash full-year operating expenses from $735 million down to around $650 million. The restructuring won’t come cheap, however, as the company estimates it’ll spend between $24 million and $33 million to reach its goal which includes between $13 million and $18 million in severance costs.

    What's more, GoPro President Tony Bates will be leaving his position at the end of the year. Bates said that in the past three years, they’ve seen enormous progress in camera technology, software and international growth, adding that his time at GoPro has been an incredible experience. His replacement hasn't yet been named.

    GoPro will no doubt be glad to put 2016 behind it. The company suffered through multiple rough quarters leading up to the launch of its Karma drone, a product that was recalled just a few weeks later due to power issues.

    Share value is up 3.66 percent as of writing on news of the restructuring.

    Permalink to story.

     
  2. MoeJoe

    MoeJoe TS Maniac Posts: 398   +207

    Overpriced ... underwhelming.
     
  3. Kunming

    Kunming TS Enthusiast Posts: 62   +17

    I bet if, like with most companies, they just slashed the unnecessarily high wages of their CEOs & boardmembers, they'd recover most of the money needed and thus not have to fire people who actually need the job.
     
  4. MoeJoe

    MoeJoe TS Maniac Posts: 398   +207

    Pull your head out of the sand.
    Problem solved.
     
  5. ghostf1re

    ghostf1re TS Enthusiast Posts: 94   +38

    Would be nice if they're cameras weren't so expensive too. They would sell a lot more units if they lowered the price. Their competition has significantly lower prices for a similar product.
     
  6. Kunming

    Kunming TS Enthusiast Posts: 62   +17

    Likewise.
     
  7. Uncle Al

    Uncle Al TS Evangelist Posts: 1,660   +767

    Like a lot of companies that invented the first really revolutionary concept in their field, GoPro is having a lot of problem understanding they are going to have to be a lot more competitive in their pricing if they are to survive. There isn't enough money in their senior management or BOD to make a measurable impact on the bottom line and laying off staff is just a slow down towards the inevitable. Unless they can hookup with another company they may indeed be doomed ..... the sad facts of business in this global economy
     
  8. Skidmarksdeluxe

    Skidmarksdeluxe TS Evangelist Posts: 6,475   +2,033

    Did they think and hope they were going to be another Apple? Only Apple can overcharge for underwhelming junk and get away with it.
     
  9. Jack007

    Jack007 TS Booster Posts: 157   +33

    Seems every company is hit hard by slow and uncertain times. Oh and competition is getting stiffer also with the Eken 8 which is a great value for an action camera
     

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