Recap: Founded in 2002, GoPro single-handedly created the action camera segment and played a pivotal role in the rise of video sharing sites like YouTube. The company went public in mid-2014 but by early 2016, slumping sales forced a wave of job cuts. Later that year, GoPro had to recall its Karma drone due to power issues. The downward spiral more or less started there as the company cut several hundred more jobs over the years as it struggled to make money.
GoPro on Thursday announced a strategic realignment that it hopes will cut costs by $100 million this year as the company struggles to cope with the economic impact of Covid-19.
GoPro said it is shifting to a more consumer-direct approach to drive growth in regions where it already enjoys a strong share of the market. To further reduce expenses, the company is cutting its workforce by more than 20 percent which equates to over 200 jobs. Office space will be reduced in five regions and sales and marketing budgets will also be cut, we're told.
Furthermore, CEO Nick Woodman will forego the remainder of his salary through the end of 2020. The company's board of directors additionally volunteered to give up their cash compensation through the end of the year.
GoPro said it plans to further reduce operating expenses to $250 million next year.
The silver lining here is that the reductions will not impact GoPro's 2020 product roadmap, meaning we'll still get new hardware, software and subscription products in the coming months.