Faced with a decline in demand for its cameras and action connected with production problems, the manufacturer announced the departure of its chairman at the end of the year and the elimination of 200 full-time jobs.
Almost a year after dismissing 7% of its employees GoPro continues to “degrease”. The GoPro onboard cameras manufacturer announced Wednesday its intention to reduce its workforce by 15%, or 200 full-time jobs, and closing its division “entertainment” of video content creation in order to lower costs and to reconnect with profitability.
The US company is indeed facing a decline in demand for its action connected cameras to production problems and had to face a recall of its Karma drones launched recently. Please note an encouraging sign, however: during the Black Friday sales GoPro cameras grew by 35% compared to last year at major US retailers, the group added.
Wall Street responded positively
With this restructuring estimated at between 24 million and 33 million (EUR 23-31 million), the California group hopes to reach its goal of a return to profitability for the year 2017. GoPro also announced that its president Tony Bates leave the group at the end of the year.
Result, the action of the former darling of Wall Street, which employed 1,539 people at the end 2015, up 3% to 10.13 dollars in early trade on the New York Stock Exchange.