GoPro plans to cut about 26 percent of its workforce, roughly 240 employees, as part of its restructuring plan. This number exceeds the 15 percent (140 employees), which the company announced on August 19 as part of the plan.
The company expects to complete most employee layoffs by the end of 2024.
According to a regulatory filing with the Securities & Exchange Commission, GoPro expects the update to its restructuring plan to result in an estimated aggregate charge of $15.5 million to $18.5 million. Under the former plan, charges were expected to range between $5 million and $7 million.
According to a filing, cash severance expenditures under the updated restructuring plan will be nearly $8 million to $9 million in the fourth quarter of 2024, while project cancellation costs will be about $6 million to $8 million.
During its second-quarter earnings call, GoPro announced its intent to reduce operating expenses by about $50 million from projected fiscal 2024 expenses to $315 million to $325 million in fiscal 2025.
GoPro reported a second-quarter 2024 non-GAAP loss of 24 cents per share, narrower than analysts’ 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.
Revenues totaled $186 million in Q2, down 23 percent year-over-year. However, the revenue reportedly exceeded GoPro’s guidance of $170 million (+/-$5 million) as higher demand for the Hero12 Black camera in Europe and North America cushioned the company’s top-line result from an even greater decline.
Image courtesy hult.edu
