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January 14, 2016updated 31 Aug 2016 10:16am

GoPro to slash workforce following disastrous fourth quarter

News: Lower than expected sales and competition from Xiaomi leads to weak revenue in Q4.

By CBR Staff Writer

Action camera manufacturer GoPro will cut approximately 7% of its global workforce as it plans to better align resources to key growth initiatives.

The move is expected to incur about $5m to $10m of restructuring expenses in Q1. GoPro employed around 1,500 people at the end of 2015.

The company has also downgraded its guidance for Q4 2015 from between $500 and $5550m in revenue to $435m in revenue.

GoPro said Q4 revenue reflects lower than expected sales of its capture devices in the first half of the quarter and includes a $21m reduction for price protection related charges arising from the HERO4 Session repricing in December.

The company is due to release its financial results for Q4 and full year 2015 early next month.

GoPro has also named Zander Lurie to its board. He has resigned as senior vice president of GoPro Entertainment.

The company is facing stiff competition from China’s Xiaomi, which is offering cheaper alternatives to GoPro’s cameras.

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GoPro intends to release a consumer drone later this year. Last year, the company started licensing content shot on its cameras to media firms.

 

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