Mar 16, 2017 04:46 PM EDT
GoPro Layoffs Latest News & Update: More Workers Being Laid Off As Cost-Cutting Continues
Roughly 270 GoPro employees are now jobless following the latest cost-cutting move. The announcement was made not long after the company released its first quarter financial reports that will reportedly fall between $190 to $210 million
The company has resorted to restructuring with the aim of reducing its GAAP and non-GAAP operating expenses for the year, Slash Gear reported. The goal of the company is to reduce the full-year GAAP operating expenses to below $585 million and non-operating GAAP below $495 million without affecting the roadmap of the company. In a manner of speaking, this may lead to retained employees doing multitask jobs.
The latest move by GoPro will also include shutting down the entertainment division as it continues to streamline its products which will include new hardware and software as well as international growth per an official press release. They did enjoy good sales over the holidays but apparently, more crunched numbers are needed to survive financially.
The company has had its share of setbacks, including product recalls and missed projections since going public back in 2014. In the last quarter of 2016, GoPro lost $116 million due to production delays on the Hero5 camera, Forbes reported. The Karma drone recall added to the companies problems.
Aside from the entertainment division, other divisions from within are expected to be hit as well. GoPro spokesperson called it a global action but did not specify which teams would be affected by the looming retrenchment. Employees under the virtual reality and technology for professional broadcasters have already been cut, as well as some executives.
Almost a third of the positions at the vice president level and above have been laid off last quarter. With another wave of employees getting the pink slip, the lucky and remaining ones may have their work cut out for them to keep GoPro afloat. This includes divisions like public relations, marketing, and sales.