GoPro’s restructuring will see a 15% reduction in workforce, with layoffs starting in Q3 and concluding by end of 2024.
GoPro announced on Monday that it will reduce its workforce by approximately 15% as part of a broader restructuring initiative aimed at cutting operating expenses. This move is expected to involve laying off around 139 employees, with the process slated to start in the third quarter and be completed by the end of 2024.
The company anticipates incurring restructuring charges between $5 million and $7 million. Specifically, it plans to recognize $1 million in cash expenses during the third quarter and an additional $4 million to $6 million in the fourth quarter of 2024. This restructuring plan is designed to streamline operations and improve financial efficiency.
The decision to cut jobs comes as GoPro aims to better align its workforce with its strategic goals and market demands. By reducing its operating costs, the company seeks to enhance its overall profitability and maintain its competitive edge in the action camera industry.
Shares of the company, which had 925 full-time employees at the end of the second quarter ended June 30, were up 1.5 percent after the layoffs were announced.
Earlier this month, GoPro reported revenue of $186 million (roughly Rs. 1,558 crore) for second quarter, down 22.7 percent compared to last year and operating expenses of $103 million (roughly Rs. 103 million), an increase of five percent from a year ago.
The US International Trade Commission said in May it was launching a probe into GoPro’s claims that patents for its cameras, systems and accessories were being violated by Chinese firm Arashi Vision as the company imported similar products into the United States.