Can GoPro Bounce Back After A Difficult 2016?
Written by Felix Richter
GoPro announced another round of layoffs in an effort to streamline operations, cut costs and ultimately return to profitability. GoPro plans to eliminate 270 positions, following the job cuts that came in January 2016 (100 jobs) and November 2016 (200 jobs).
The latest announcement comes after a year that proved challenging for GoPro to say the least. Following weak holiday season sales in 2015, the company’s camera shipments dropped by nearly 50 percent through the first three quarters of 2016 before improving in the holiday quarter. The launch of the long-awaited Karma drone didn’t help ease GoPro’s pain, as the device had to be pulled off the market following technical difficulties that saw some drones lose power while in mid-air. The company’s struggles didn’t go unnoticed by investors either and GoPro’s share price subsequently plummeted by 53 percent through 2016.
According to insiders quoted by Forbes, most of the latest job cuts will occur in the company’s virtual reality and broadcasting departments, indicating a stronger focus on camera and drone hardware going forward. This would be in line with comments made GoPro founder and CEO Nick Woodman earlier this year when he said he wants his company to “do just a few things extremely well, instead of doing too many things marginally".
This chart shows revenue, net income/loss and employee headcount of action camera maker GoPro.
You will find more statistics at Statista.
Note added by Econontersect: Below is the lifetome stock chart for NASDAQ:GPRO from Investing.com.
Disclaimer: The views expressed in this post are those of the authors and do not necessarily reflect the position of the Federal Reserve Bank of New York or the Federal Reserve ...
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