GoPro to cut around 270 Jobs in Bid to Return to Profitability

255

GoPro Inc on Wednesday evaluated its first-quarter income at the top end of its previous forecast, and said it would cut about 270 employments to reduce expenses in an offer to come back to profitability in 2017.

Shares of the organization, which had 1,552 employees as of December 31, were up around 7 percent at $7.89 in extended trading.

GoPro had previously forecast its income to be $190 million to $210 million for the quarter ended March 31.

“We right now have no need to draw on our credit facility and we hope to be EBITDA positive for full-year 2017,” Chief Financial Officer Brian McGee said in an announcement.

“Actually, with where we are at, I think we will get to EBITDA positive ahead of the fourth-quarter (this year)”, a GoPro official told analysts on a conference call on Wednesday.

GoPro likewise said it hopes to see double digit revenue growth in 2017.

The organization said it doesn’t hope to rebuild further in terms of job cuts this year to come back to profitability.

The wearable action camera creator has been struggling with slowing sales of its helmet- and body-mounted cameras as less expensive opponents emerge and cell phones highlight increasingly advanced cameras.

GoPro has likewise been plagued by missteps: a delay in the launch of the Karma drone, production issues for the Karma and Hero5 camera once they launched in mid-September, and then a recall.

The job cuts come about three months after the organization said it would cut about  15 percent of its workforce and shutter its entertainment business.

GoPro said it would incur charges of up to $10 million in the primary quarter related to the restructuring.

NO COMMENTS