December 2016 saw Gopro announced that 1,552 employees had been terminated, leaving the company with less than 1,300 workers. Merely three months after reducing 15 percent of its staff, GoPro is once again back to sacking full-time personnel. The camera maker announced Wednesday that it had scratched 270 positions to achieve profitability, citing that the layoffs will reduce operating expenses. According to a statement, the second round of layoffs was decided after a comprehensive review of its operations. Founder Nicholas Woodman claimed that the recent attrition will be beneficial in achieving profitability goals for 2017.
GoPro CEO: positive of the move
Meanwhile, newly named CEO Charles Prober said the job cuts are a beneficial move for GoPro. “We are confident that we are not making those trade-offs,” he told analysts during a conference call. The exec added that the company is striving to be more focused, enhance efficiency and perform “fewer things” better.
GoPro’s official statement said that the expected revenue is between $190 million and $210 million. Restructuring the company is said to be worth $10 million; however, most of it will proceed to the affected workers' severance pay.
The Karma drone disaster
The second round of layoffs follows the Karma drone disaster last year. In September, the company had to recall around 2,500 units after complaints of the drone malfunctioning mid-flight were raised by owners.
Recently, its entertainment division put its operations to a full stop as well.
In spite of it all, Woodman remains positive and reminded analysts that the company had launched an editing software, new cameras and a drone all in 2016. According to its founder, products have been consistent for customers, adding that the company he built is facing lesser risks than it did before. “We have shifted from a revolutionary year to an evolutionary year,” he said. Meanwhile, analysts and investors are expecting the company to keep launching new products this year.
