GoPro Inc on Wednesday announced it is to cut 7 percent of its workforce and that revenue last year was less than expected, sending the mini-camera maker’s shares into a dive.
GoPro shares fell more than 22 percent to US$11.33 in after-market trades.
The job cuts represent hundreds of positions, with the stated intent being to “better align resources to key growth initiatives.”
Photo: AP
Silicon Valley-based GoPro said that its ranks of employees had been growing by more than 50 percent annually and tallied more than 1,500 as of the end of last year.
GoPro released preliminary figures indicating that revenue for the final quarter of last year was approximately US$435 million and was expected to be US$1.6 billion for all of last year.
The revenue represented a significant drop from the previous year and was well below analysts’ expectations.
GoPro is to release its official earnings figures for last year on Feb. 3.
GoPro said the preliminary take on the fourth quarter reflected lower-than-anticipated sales of its cameras and a price cut of its HERO4 model last month.
GoPro was an early hit with extreme sports enthusiasts who used the mini-cameras to film their exploits and went on to win over teens and young adults interested in sharing videos on YouTube or social networks.
GoPro went public in June 2014 with shares initially priced at US$24 and soared in subsequent months, more than tripling in value at one point, but investors began to worry about the company’s growth prospects and the possible saturation of an increasingly competitive market.
GoPro shares began sliding last year, and have lost about 75 percent of their value since August.
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