(Action camera maker GoPro, once the darling of adventure enthusiasts, is about to embark on a ruthless campaign of job destruction, cutting a whopping 15% of its workforce in a desperate bid to stay afloat.
The company is expected to take a massive hit of around $5-7 million in restructuring charges, with the layoffs beginning in the third quarter and expected to be complete by the end of 2024. Yes, you read that right – over 139 jobs will be lost as GoPro tries to stem the tide of its declining fortunes.
But don’t just take our word for it – GoPro’s own numbers tell the story. The company reported a dismal $186 million in revenue for the second quarter, down a staggering 22.7% from the same period last year. And despite increasing operating expenses by 5% year-on-year, the company is still bleeding cash.
The layoffs come as GoPro faces increased competition from Chinese firms, and a probe by the US International Trade Commission into allegations that patents for its cameras, systems, and accessories are being violated by Arashi Vision. It’s a sign of a company in crisis, desperate to cling to relevance in a rapidly changing market.
And yet, shares of the company were up a meager 1.5% following the announcement. It’s a vote of confidence from investors, but is it really? Or is it just a case of “buy the rumor, sell the news”? Only time will tell.
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