GoPro Inc (NASDAQ: GPRO) has announced that it will be cutting over 250 jobs, or over 20% of its global workforce, reducing the amount of workers to less than 1,000 people, in a business restructuring. The business restructuring and job cuts will cost the company an estimated $23 to $33 million. The company said most of the restructuring costs will be recognized in the first quarter.
“We expect that going forward, our roadmap coupled with a lower operating expense model will enable GoPro to return to profitability and growth in the second half of 2018,” says Nicholas Woodman, Chief Executive Officer of GoPro Inc.
The company announced that it is only expecting $340 million in sales, falling short of its own projection of $480 million and the average analyst estimate of $472 million. The company credits falling short of its projected sales to discounting its Karma drones and its Hero line of cameras for the holiday season. The company also announced it will be discontinuing its drone business due to a less than desirable fourth quarter.
Shares for GoPro Inc. dropped by 33% on Monday, reaching a record low of $5.04 since going public in 2014.