SAN MATEO, Calif. (BRAIN) — GoPro announced Wednesday that it will cut 15 percent of its workforce and close its content-focused entertainment division to reduce costs as the action camera maker works to return to profitability in 2017. The company said the cuts include "elimination of more than 200 full-time positions plus the cancelation of open positions."
Additionally, GoPro said president Tony Bates will step down at the end of the year. "My time at GoPro has been an incredible experience," Bates said. "In the past three years, GoPro has seen enormous progress in camera technology, software and international growth. Today GoPro has a solid leadership team deeply focused on its core business and profitability."
The announcements come on the heels of GoPro's disappointing third-quarter financial report — its fourth consecutive quarterly net loss — and the recall of the company's much-anticipated Karma drone after some drones were found to suddenly lose power during flight.
GoPro also said Wednesday that camera unit sales for Black Friday week this year were up 35 percent year-over-year on strong U.S. sell-through for its new Hero5 cameras, which launched in October.
"We have a lot of work to do to finish the quarter and our fiscal year. However, our Hero5 cameras have been very well-received by critics and consumers alike," said GoPro founder and CEO Nicholas Woodman. "Both Hero5 cameras can now auto-offload new content to the cloud, and our Quik mobile app makes accessing and editing your footage fun. It's clear consumers are excited about these new features."
