Things are changing in GoPro’s office, with the latest Q3 reports and the many crashes of GoPro’s new drone, Karma, GoPro announced that it going to restructure and get rid of some products. As they step into 2017, GoPro wants to make sure that it will positively make up for all the loss and production issues the company had to deal with in 2016.
The announcement was made after a series of drone crashes that made GoPro recall its Karma aircrafts. GoPro announcement noted both good and bad news, “We have a lot of work to do to finish the quarter and our fiscal year, however our HERO5 cameras have been very well-received by critics and consumers alike,” said Nicholas Woodman, Founder & CEO of GoPro. “Both HERO5 cameras can now auto-offload new content to the cloud and our Quik mobile app makes accessing and editing your footage fun. It's clear consumers are excited about these new features.”
As part of the new structure president, Anthony Bates would be quitting his post at the end of the year after three years of working with GoPro, “My time at GoPro has been an incredible experience,” said Tony Bates. “In the past three years, GoPro has seen enormous progress in camera technology, software and international growth. Today GoPro has a solid leadership team deeply focused on its core business and profitability.”
GoPro is also going let go of 15% of its workforce, “The restructuring includes the closure of its entertainment division, facilities reductions, and the elimination of more than 200 full-time positions plus the cancellation of open positions for a reduction in force of approximately 15 percent”, noted GoPro’s announcement.
“GoPro estimates that it will incur total aggregate charges of approximately $24 million to $33 million for the restructuring, including approximately $13 million to $18 million of cash expenditures as a result of the workforce restructuring, substantially all of which are severance costs, and approximately $11 million to $15 million of non-cash expenditures, consisting primarily of stock-based compensation expense and accelerated depreciation associated with office consolidations. The company expects to recognize most of the restructuring charges in Q4 2016”, added GoPro’s announcement.
A BBC report noted that GoPro's shares were trading 2.5% up by early afternoon in the city of New York, However they remain low compared to the beginning of the year.
“Consumer demand for GoPro is solid and we've sharply narrowed our focus to concentrate on our core business,” said Nicholas Woodman. “We are headed into 2017 with a powerful global brand, our best ever products, and a clear roadmap for restored growth and profitability in 2017.” Let's hope that GoPro will bounce back and keep doing what it is best at.