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GoPro to cut 200 jobs as camera sales struggle

The restructuring will see closure of its entertainment division.

By CBR Staff Writer

Action camera-maker GoPro has announced to cut 200 jobs or 15% of its workforce, as part of its restructuring efforts to revive its business.

The latest job cuts follow the announcement made in January this year to axe 7% of its total staff.

Under the new restructuring plan, the company plans to close its entertainment division and shutdown some of its facilities.

Besides, GoPro announced that Tony Bates will depart from his position as president of the company at the end of the year.

Bates said: “In the past three years, GoPro has seen enormous progress in camera technology, software and international growth.  Today GoPro has a solid leadership team deeply focused on its core business and profitability.”

The company estimates that it would incur a cost of approximately $24m to $33m for the restructuring.

It also announced that the company-wide restructuring will result in reducing 2017 operating expenses to approximately $650m and reach its goal of returning to profitability next year.

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gopro-heroGoPro Founder and CEO Nicholas Woodman said: “Consumer demand for GoPro is solid and we’ve sharply narrowed our focus to concentrate on our core business.

“We are headed into 2017 with a powerful global brand, our best ever products, and a clear roadmap for restored growth and profitability in 2017.”

However, the company said its Black Friday camera unit sales this year grew more than 35% year-over-year at leading US retailers.

In October, it launched HERO 5 cameras after the introduction its previous model Hero 4 two years ago.

Earlier this month, the company issued a recall for its nearly 2500 Karma drones bought by consumers since October 23.

The recall was announced after detecting that Karma drones went out of power during operation in a very small number of cases.

Woodman said: “A very small number of Karma owners have reported incidents of power failure during operation. We have moved quickly to recall all units of Karma and provide a full refund while we investigate the issue.”

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