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Simplifying... Inshort

GoPro is cutting 15% of its workforce, affecting around 139 jobs, as part of a restructuring plan that will cost between $5-7 million.
This comes after a 22.7% drop in Q2 revenue and a rise in operating expenses, alongside a patent dispute with Chinese firm Arashi Vision.
Despite the layoffs, GoPro's shares saw a slight increase of 1.5%.

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Around 139 jobs will be impacted

GoPro lays off 15% of its workforce amid restructuring efforts

By Dwaipayan Roy

Aug 20, 2024

11:31 am

What's the story

GoPro, the renowned action camera manufacturer, has announced plans to reduce its workforce by approximately 15% this year. It will impact around 139 jobs. This decision is part of a broader restructuring strategy aimed at decreasing operating costs. The company disclosed these details in a filing with the US Securities and Exchange Commission (SEC). This is not the first time GoPro has resorted to job cuts in 2024, having already reduced its staff by 4% in March.

Financial impact

Restructuring plan to cost GoPro up to $7 million

The restructuring plan is expected to cost GoPro between $5 million and $7 million. The company anticipates recognizing cash expenses of approximately $1 million in the third quarter, with an additional estimated expense of around $4 million to $6 million in the fourth quarter of 2024. These figures were revealed as part of the company's disclosure about its workforce reduction strategy.

Effect

Layoffs to affect approximately 139 jobs

The impending layoffs at GoPro, which are set to begin in the third quarter and conclude by year-end, will impact roughly 139 employees. This figure represents a significant portion of the company's full-time staff of 925 as of June 30. Despite this news, GoPro's shares experienced a slight uptick of 1.5%.

Financial performance

Q2 revenue drops, operating expenses rise

In its second quarter report, GoPro disclosed a revenue of $186 million, marking a significant 22.7% decrease compared to the same period last year. Concurrently, the company's operating expenses rose by 5% from last year to reach $103 million. These financial results provide context for the company's decision to implement workforce reductions and restructuring measures aimed at curbing operational costs.

Worries

GoPro's patent dispute

In May, the US International Trade Commission initiated an investigation into GoPro's allegations, that Chinese firm Arashi Vision had infringed on its patents for cameras, systems, and accessories. This development adds another layer of complexity to GoPro's current challenges.