GoPro streamlines 15% of workforce and disables its entertainment department

by FixPCDLL Expert on December 1, 2016

GoPro, action camera manufacturer, announced today that it would streamline 15% of workforce( about 200 employees) as a part of reorganization plan and disable its entertainment department.

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GoPro claimed that this job cut would save $24 million to $33 million for restructuring charges. The cash expenditure accounts for $13 million to $18 million and the non-cash expenditure accounts for about $11 million to $15 million. These expenditures are considered as expending of Q4 earning.

In addition, Tony Bates will resign from GoPro at the end of this year. GoPro also announced the weekly camera sales of Black Friday increased by 35% yoy. The sales from Thanksgiving day to Cyber Monday increased by 33% yoy.

The Black Friday was on November 25 this year, one day after Thanksgiving Day. It meant the Thanksgiving shopping season started. While Cyber Monday was the first workday after Thanksgiving holiday, the first Monday. Cyber Monday is the hottest online shopping day in United States.

Nicholas Woodman, GoPro CEO, claimed that they still have a great deal of work to finish in Q4 and whole fiscal 2016. At present, the demands on GoPro cameras are stable. GoPro is narrowing its business scope and focusing on core products.

The revenue of GoPro in revenue in Q3 declined by 40%, at $ 240.6 million. The net deficiency was $104.1 million while it profited $18.8 million yoy. GoPro predicted that its revenue in Q4 would reach $600 million to $650 million which was under the average predication at $ 666.14 million made by analysts.

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