GoPro to lay off 7% of its workforce

GoPro didn’t have a good end to 2015 and the start of 2016 isn’t shaping up to be any better for the brand. The action camera maker recently revealed that sales during the holiday quarter were “lower than anticipated” and they will be laying off seven percent of their workforce. "Over the past two years, GoPro's headcount has grown by more than 50% annually, to more than 1,500 employees at the end of 2015," the company said in a release. "To better align resources to key growth initiatives, GoPro has implemented a reduction in its workforce of approximately 7 percent."

Shares of the company have dropped from US$65 back in August to just $14 per share this week, which is $10 less of its $24 price during its public offering. And when GoPro made the announcement on Wednesday, the stock fell further to $11 per share. The company said they generated about $435 million in the fourth quarter, which was less than they expected in part because of the multiple price cuts the new Hero4 camera took (which also cost the company some $21 million). They are also expected to incur around $30 million to $35 million for excess inventory and order commitments.

Source: Mashable