GoPro shares were up nearly 6 percent on Monday, July 19, after the company announced that it would slash 15 percent of its workforce this year in a cost-cutting measure amid lower year-over-year sales.
The company reported in an SEC filing that it expected to take charges in the range of $5 million to $7 million for its restructuring plan, and it would recognize cash expenses of $1 million in the third quarter and roughly $4 million to $6 million in the fourth quarter of 2024.
“GoPro, Inc. previously announced during its August 6, 2024 Second Quarter earnings call its intent to reduce operating expenses by approximately $50 million from projected fiscal 2024 expenses to $320 million +/- $5 million in fiscal 2025,” the company wrote in its 8-K filing.
On Monday, August 19, GoPro announced that its Board of Directors approved a Restructuring Plan to help achieve that goal. The Plan would reduce its full-time employees by 15 percent from 925 full-time workers at the end of Q2. The cuts beginning in Q3 2024 and be “substantially completed” by the end of 2024. The layoffs would affect 139 positions.
GoPro reported a second-quarter 2024 non-GAAP loss of 24 cents per share, narrower than the Zacks Consensus Estimate of a 25 cents per share loss for the quarter but considerably higher than the loss of 5 cents per share in the year-ago quarter.
The company generated revenues of $186 million in Q2, down 23 percent year-over-year. The revenue reportedly exceeded the company’s guidance of $170 million (+/- $5 million). The top line beat the consensus mark by 9.2 percent.
Higher demand for the Hero12 Black camera in Europe and North America reportedly cushioned the company’s top-line result from an even greater decline.
According to Reuters reporting, the U.S. International Trade Commission said in May it was launching an investigation into GoPro’s claims that Arashi Vision, a Chinese company, had violated patents for its cameras, systems and accessories it imported similar products into the U.S.
Image courtesy GoPro
