GoPro announces 270 jobs to be cut as stock hits all time low

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GoPro has announced that it will trim a further 270 jobs in a further attempt to return the business to profitability.

Following an earlier cull announced in December, the drive to reduce operating expenses was revealed in a company statement in which the firm outlined that it expected to rack up restructuring charges of around $10 million, largely related to redundancies.

Overall the company expects to trim its operating expenses by $200 million year-on-year.

Further to the streamlining of the workforce, the firm’s Q1 statement affirmed that 2017 first quarter revenue should be in the upper end of its previously announced $190-210 million range and repeated its target of full-year non-GAAP profitability. The Company also announced a restructuring that reduces full-year GAAP operating expenses to below $585 million and non-GAAP operating expenses to below $495 million without impacting the Company’s roadmap for new hardware and software products.

CEO Nicholas Woodman said that the cuts would keep the company on track to achieve a return to profitability in 2017. In an interview with CNBC Woodman also outlined that he believed the firm has “failed to make Gopro contemporary and failed to align GoPro to the smartphone movement.”

“Today we are updating revenue guidance for the first quarter of 2017. We now expect to deliver revenue in the upper end of our guidance range of between $190 million and $210 million,” said GoPro Chief Financial Officer, Brian McGee.  “We currently have no need to draw on our credit facility and we expect to be EBITDA positive for full-year 2017.”

In 2016 the firm recorded a net loss of $420 million on the back of a miss-fired launch of the Karma drone, among other problems.

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