Following news of their first quarter earnings, GoPro plans to cut more jobs.
GoPro just pre-announced their first quarter earnings for 2017, and happily reported that their revenue was on the upper end of projections. However, the good news was tempered by another announcement: GoPro will be cutting more jobs. This is the third round of downsizing for the company, which in January 2016 let 100 jobs go, and in November followed up with another 200 (roughly seven and fifteen percent of their workforce respectively).
The cuts are getting larger, and are the result of GoPro trying to right the company after a tough 2016 with plummeting stock prices in the wake of weak 2015 holiday sales and the recall of a long awaited folding drone after some units lost power in flight. GoPro faces a lot of challenges, as more competitors enter the action camera market, and often for considerably cheaper prices. As drastic as these cuts seem however, the earnings report does suggest that the company is heading in the right direction.
“We’re determined that GoPro’s financial performance match the strength of our products and brand,” said CEO Nick Woodman in a statement issued alongside the financial news. “Importantly, expense reductions preserve our product roadmap and we are tracking to full-year non-GAAP profitability in 2017.”
The statement mirrors the CEO’s previous statements at CES back in January, and stock prices have risen somewhat after the financial report was released. It’s notable to mention that most of the cut jobs will be in GoPro’s virtual reality and broadcasting wings. A source told Forbes that “no one is left” to manage those parts of the company. This also follows with Woodman’s statements at CES, where he expressed that the company would refocus on a core set of products.