Action camera maker GoPro announced that it will cut 15% of its workforce as part of a company restructuring to reduce operational expenses. The layoffs should affect nearly 139 employees and will be staged in the third quarter of 2024.
GoPro CEO Nicholas Woodman stated (via Reuters) that the layoffs were part of the company's difficult decisions in streamlining operations and lowering costs. "We are reorganizing several portions of our business to increase efficiency and refocus our efforts on the strategic initiatives that we believe will best support our long-term growth," Woodman said.
Within the restructuring, GoPro will incur restructuring charges of $5-7 million and will recognize cash expenses of approximately $1-2 million in the third quarter and $4-6 million in the fourth quarter. While speaking about the cuts of some positions, Woodman said that it will help GoPro work in a more profitable way forward.
Job cuts come after GoPro reported a 22.7% year-over-year revenue decline in Q2 to $186 million. Operating expenses rose slightly during the period to $103 million. Shares of GoPro jumped 1.5% on the news of the restructuring, showing investors are hopeful the changes will let the company get back on a growth path.
The market for action cameras is already crowded, but Woodman remains hopeful. He says the only solution for GoPro to succeed and win the future of cameras is streamlining costs through layoffs and other measures in the restructuring plan.
In other news, GoPro says a Chinese company infringed on a host of its camera technology patents. In a public filing, the U.S. International Trade Commission said it would investigate claims GoPro raised against Chinese Arashi Vision and its Insta360 action camera lineup. GoPro claims that Insta360 cameras, systems, and mounting accessories infringe on patents covering GoPro's SuperView, virtual lens, HyperSmooth, and Horizon Leveling technologies.
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