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GoPro Cuts 270 Jobs To Reduce Operating Expenses For 2017

By Monica U Santos , Mar 16, 2017 05:04 AM EDT
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GoPro announced today that they are reducing their workforce by about 270 employees. The company decided to do this in order to reduce operating costs by approximately $200 million for 2017. The new job cuts include open positions, current employees as well as the third decrease in GoPro’s workforce since the year 2016.

In January of 2016, GoPro laid off seven percent of its workforce. However, the layoffs of the firm in November were more severe than ever. According to The Verge, GoPro operated at a loss of $373 million in total for the year 2016, thanks to the production delays on the new GoPro Hero 5 cameras as well as the recall of the Karma drone. The stock price of the camera company hit an all-time low peak this past few week, though it was higher more than 10 percent compared to hours trading following the news.

Because of that, GoPro cut 15 percent of its employees, which completely shuttered the entertainment department. The cut also includes the loss of company's president, Tony Bates, which is also the former head of Skype. As of now, GoPro declined to explain which areas and divisions would be affected by the new round of cuts.

GoPro Will Soon Release Hero 6

According to Endgadget, the job cuts expects to spend and charge a total of $10 million this quarter due to the restructuring. GoPro founder and CEO Nick Woodman said that the company is still on the right track and will turn 2017 a profitable year. Woodman also said that hardware roadmap will not be affected, therefore fans can still expect a new GoPro Hero 6 action camera later this year.

“There will be new cameras and other accessories released during the year and new camera namely being Hero 6," Woodman confirms. He also said that GoPro is not going to share any information in advance regarding the upcoming action camera. However, according to reliable resources, GoPro Hero 6 will aim to pack exciting new features while delivering an affordable price that appeals to the mass market.

 

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