GoPro to cut 15% of workforce as future remains uncertain

Trouble deepens for GoPro after the action camera maker announced on Monday that it plans to reduce its workforce by about 15% this year as part of a major restructuring effort to lower operating costs. The once high-flying camera maker is now attempting to stage a comeback after facing a two-year downturn due to product missteps and growing competition.

According to Reuters, GoPro anticipates incurring costs between $5 million and $7 million for this restructuring, with cash expenses of $1 million to be recorded in the third quarter and an additional $4 million to $6 million in the fourth quarter of 2024.

The layoffs, affecting approximately 139 positions, are expected to start in the third quarter and wrap up by the end of the year. Following the announcement, GoPro’s shares saw a 1.5% increase. The company had 925 full-time employees as of the end of the second quarter on June 30.

In its recent earnings report, GoPro revealed second-quarter revenue of $186 million, a 22.7% decrease from the previous year. Operating expenses rose by 5% year-over-year to $103 million, Reuters reported.

Despite selling 3 million cameras and gaining 2.5 million subscribers, GoPro continues to face mounting losses, contending with competitors like DJI and Insta360, whose products are comparable or superior.

GoPro was founded in 2002 by Nick Woodman, an entrepreneur driven by his passion for capturing action-packed moments during his surfing trips. Woodman initially created the company to develop a camera that could be easily mounted to capture these experiences.

Starting with a simple idea, GoPro quickly gained traction and became synonymous with action cameras, revolutionizing how people document their adventures. However, the company has faced challenges in recent years, prompting efforts to refocus and regain its position in the market.

Compounding the issue, the U.S. International Trade Commission announced in May an investigation into GoPro’s allegations that Chinese firm Arashi Vision is infringing on its camera-related patents by importing similar products into the U.S.

The company went public in 2014, raising $400 million at a $3 billion valuation. Since its IPO ten years ago, GoPro’s market value has plummeted by over 90%, with its stock now teetering on the edge of penny stock status, currently trading at just $1.31 from a debut price of $84.

Tech Layoffs Reached 132,000 So Far in 2024

GoPro’s staff reduction comes amid a broader trend in the tech industry. The company joins a growing list of Fortune 500 firms announcing job cuts.

Earlier today, General Motors revealed it will eliminate 1,000 jobs in its software and services division to focus on key projects. Cisco and Intel have also scaled back their workforces and hiring in response to global economic uncertainties, including recession fears, inflation, and rising interest rates.

According to Layoffs.FYI, a site tracking layoffs in the tech industry, over 404 companies have cut a total of 132,498 jobs so far this year.

Below is a YouTube video about “the tragic downfall of GoPro.”