US-based action camera company GoPro has revealed a workforce restructuring strategy that will result in a 15% reduction in jobs.
This move is part of an effort to streamline operations and reduce operating expenses.
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GoPro anticipates that the job cuts, affecting approximately 139 positions, will commence in the third quarter and conclude by the end of 2024.
At the end of the second quarter, GoPro’s full-time employee headcount stood at 925.
The company estimates that the restructuring will incur charges between $5m and $7m, with $1m expected to be recognised in the third quarter and the remaining $4m to $6m in the fourth quarter of 2024.
The majority of these restructuring and related charges are projected to be accounted for in the fourth quarter of the fiscal year ending 31 December 2024.
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By GlobalDataIn its recent financial report, GoPro disclosed a second-quarter revenue of $186m, a 22.7% decline from the previous year, and operating expenses of $103m, marking a 5% increase from the same period last year.
The company’s net loss for the April-June quarter expanded to $47.82m, up from $17.21m during the same quarter in 2023.
During the second-quarter earnings call, GoPro announced its intention to slash operating expenses by around $50m from the anticipated fiscal 2024 expenses, targeting a reduction to $320m +/- $5m for fiscal 2025.
The restructuring plan, approved by GoPro’s board of directors on 19 August 2024, is aimed at achieving this financial objective.
In May, the US International Trade Commission initiated an investigation into GoPro’s allegations that Arashi Vision, a Shenzhen-based company, infringed on patents with its Insta360 camera products.
According to Reuters, GoPro has requested the trade panel to issue exclusion and cease and desist orders against the importation of Insta360 products into the US.
Earlier in August 2024, Cisco also announced a restructuring plan, which is expected to affect approximately 7% of its global workforce, equating to roughly 6,000 employees.
This move by Cisco is designed to invest in key growth areas and enhance business efficiencies.
