SAN MATEO, Calif. (BRAIN) — GoPro says it expects a 16 percent increase in revenue for 2015. However, weak sales of its newest model, the Hero4 Session contributed to a decision to cut about 7 percent of its workforce, or about 105 employees.
GoPro said the workforce reduction will better align its resources to its growth plans. The company said that it will incur $5 million to $10 million in restructuring expenses in the first quarter, with almost the entire expense related to severance costs.
The company's expected revenue for the fourth quarter of last year was about $435 million, which is lower than the anticipated $500 million to $550 million. GoPro launched the Hero4 Session in July, but cut its price twice later in the year, from $400 down to $200.
The company also said it will incur costs of $30 million to $35 million related to surplus inventory and parts and obsolete tools for camera production.
