GoPro To Lay Off 7% Of Workforce As It Expects Weak Sales
GoPro is not expecting things to go well. In fact, it is pretty much expecting a sales slump. Moreover, the company believes its workforce has grown a little too much; hence, there is a need to trim down the headcount.Advertisement
In its preliminary financial result report, GoPro, Inc. said it is expecting its fourth quarter revenue to be lower than anticipated at $435 million. Meanwhile, revenue for 2015 is expected to be around $1.6 billion. The company says its fourth quarter suffered due to slower sales in capture devices from retailers. In addition, the fourth quarter revenue will also take into account a $21 million reduction resulting from price protection related charges when the HERO4 Session underwent repricing back in December.
Meanwhile, the company said that it has reduced its workforce by around 7 percent. GoPro explained that its workforce had been growing by more than 50 percent the previous year. In fact, by the end of 2015, the company said they already had more than 1,500 employees. And to be able to “better align resources to key growth,” the company decided to let some staff go. GoPro expects its recent restructuring to incur a cost between $5 million and $10 million, which will be reflected in the company’s first quarter.
GoPro is expected to hold a company earning’s call for the fourth quarter on February 3 at 2:00 PM PT.