The action camera maker will let go of 200 people in a restructuring effort.
GoPro is currently losing money, and the company announced today that it will cut 15% of its global workforce, some 200 jobs, in order to reduce its 2017 non-GAAP operating expenses to about $650 million. This would allow the company to fulfill CEO Nick Woodman’s goal of returning to profitability in the coming year. One of those 200 employees is the company’s current president Tony Bates, who will step down at the end of this year. “My time at GoPro has been an incredible experience,” said Tony Bates. “In the past three years, GoPro has seen enormous progress in camera technology, software and international growth. Today GoPro has a solid leadership team deeply focused on its core business and profitability.”
The news comes as part of a press release from GoPro which states that the holiday season has seen a solid demand for the GoPro Hero 5. Black Friday sales saw a 35% increase from 2015’s figures. GoPro’s stockprices also saw a small rise as the news broke.
The GoPro Hero 5 has been well received
Still, GoPro has had difficult maintaining its dominance in the action cam market. For one, smart phones are becoming more durable and capable of surviving the kind of activities a GoPro would be exposed to. The market is also being saturated by other action cams which sell for a fraction of GoPro’s price. The company thus needs to find a way to convince consumers that they still need a GoPro. In response to these developments, GoPro has steadily been shifting from being a camera company to being a full media company, using their brand to promote athletes and amazing videos.