Action camera maker GoPro plans to cut about 15% of its workforce this year as part of a restructuring plan to reduce operating expenses.
The company expects to take charges in the range of US$5-million to $7-million for the restructuring plan, with cash expenses of $1-million to be recognised in the third quarter and about $4-million to $6-million in the fourth quarter of 2024.
The layoffs — around 139 jobs — are expected to begin in the third quarter and would be completed by the end of 2024.
Shares of the company, which had 925 full-time employees at the end of the second quarter ended 30 June, were up 1.5% after the layoffs were announced.
Earlier this month, GoPro reported revenue of $186-million for second quarter, down 22.7% compared to last year and operating expenses of $103-million, an increase of 5% from a year ago.
The US International Trade Commission said in May it was launching a probe into GoPro’s claims that patents for its cameras, systems and accessories were being violated by Chinese firm Arashi Vision as the company imported similar products into the US. — Juby Babu, (c) 2024 Reuters
