GoPro Restructures with 270 Layoffs, Targets Profitability in 2017
In a strategic move to streamline operations and achieve financial stability, GoPro has announced plans to cut 270 positions across its workforce. This decision comes as part of broader cost-cutting measures aimed at preserving the company’s product roadmap while steering toward full-year profitability.
Key Details of the Restructuring
- Scope of Layoffs: The reduction includes both filled roles and open positions.
- Financial Impact: GoPro anticipates up to $10 million in restructuring charges, primarily due to severance costs.
- Strategic Goal: The company reaffirmed its commitment to achieving non-GAAP profitability by the end of 2017.
A Pattern of Workforce Reductions
This marks GoPro’s third major workforce reduction in under two years:
- November 2016: 15% of staff (200 employees) laid off, including the shutdown of its entertainment division.
- January 2016: 7% of employees let go amid earlier restructuring efforts.
These repeated cuts highlight the company’s aggressive push to stabilize finances, though they may raise concerns about employee morale and long-term growth capacity.
Financial Performance and Outlook
Despite reporting a 23.8% annual revenue increase in Q4 2016 (\(540 million), GoPro posted a **\)115.7 million GAAP net loss** (\(42.3 million non-GAAP net income). The company remains optimistic, projecting Q1 2017 revenue at the **high end of its \)190–$210 million forecast**.
CFO Brian McGee emphasized:
“We currently have no need to draw on our credit facility and expect to be EBITDA positive for full-year 2017.”
The Road Ahead
GoPro’s latest restructuring reflects its determination to adapt to market challenges while maintaining innovation. Investors and industry watchers will closely monitor whether these cuts translate into sustainable profitability—or signal deeper operational struggles.
For further details, refer to GoPro’s official press release.
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