GoPro Inc (NASDAQ:GPRO) has announced that it is reducing the number of employees by a further 270. This is in addition to the 100 employees that were laid off early last year and 200 in November last year. Nick Woodman, the chief executive of GoPro, said the job cuts were necessary to ensure the future of the action-camera company.
“We’re determined that GoPro’s financial performance match the strength of our products and brand. Importantly, expense reductions preserve our product roadmap and we are tracking to full-year non-GAAP profitability in 2017,” said Woodman in a statement.
Recalls and production delays
The layoffs at GoPro will assist the company cut operating expenses without having to sacrifice products that are in the pipeline. Last year in the fourth quarter, losses of $116 million were made partially as a result of delays in the production of the Hero5 camera. The recall of the Karma drone was also partly responsible for the losses. This drone had been unveiled in September only to be recalled while the busy holiday season was underway following technical hitches with the product.
In public appearances, the GoPro’s chief executive has attributed the company’s problems to overreaching itself and a lack of focus where the action-camera firm took on too many ventures with only marginal successes. Sources now reveal that the firm is focused on the Karma drone and action cameras. Huge resources have been poured into the two despite the fact that they have encountered little success.
Senior management
The newest layoffs at the company might see entire divisions shut down like was the case back in November. Last year, the firm announced that the entertainment division was to be shuttered. Among the divisions likely to be affected include the firm’s virtual reality unit.
Senior executives have not been spared either. The senior vice presidents for consumer devices, marketing, and operations have all left as well as the vice presidents of entertainment and corporate development. Last quarter around 30% of the VP-level positions were eliminated.
On Wednesday shares of GoPro Inc rose by 1.52% to close the day at $7.35.
