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© GoPro Electronics Production | December 01, 2016

GoPro to reduce workforce by 15%

The tech company will launch a company-wide restructuring program aiming to reduce its non-GAAP operating expenses and improve efficiency.
The company announced the restructuring plans in a press release touting that the company’s Black Friday camera unit sales were up more than 35% year-over-year at US retailers.

"We have a lot of work to do to finish the quarter and our fiscal year, however our HERO5 cameras have been very well-received by critics and consumers alike," said Nicholas Woodman, Founder & CEO of GoPro.

In the same release the company announced that it will go through a restructuring aiming to reduce its full-year 2017 non-GAAP operating expenses to approximately USD 650 million and with that achieve its goal of returning to non-GAAP profitability in 2017.

The restructuring includes the closure of its entertainment division, facilities reductions, and the elimination of more than 200 full-time positions – plus the cancelation of open positions – which equals a reduction of approximately 15% of the company’s workforce.

GoPro estimates that it will incur total aggregate charges of approximately USD 24 million to USD 33 million for the restructuring, including approximately USD 13 million to USD 18 million of cash expenditures as a result of the workforce restructuring, substantially all of which are severance costs.

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