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GoPro to cut workforce, close entertainment unit

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Wearable action camera maker GoPro Inc. said it would cut about 15% of its workforce and shut down its entertainment business, as it looks to return to profitability. The company had about 1,539 employees at the end of 2015. The company will cut about 200 full-time positions, cancel open positions and shut down its entertainment division as part of the restructuring.

Shares of the company were up 4% in premarket trading on Wednesday.

GoPro has been struggling with slowing sales of its wearable action cameras and the recall of its recently launched Karma drones. GoPro also said camera sales in the Black Friday week were up more than 35% from a year earlier at leading US retailers.

Tony Bates, the company’s president, will step down at the end of the year, GoPro said.

The company said it expects to incur about US$24mil (£19.13mil) to US$33mil (£26.33mil) in restructuring charges, mostly in its fourth quarter.

Paul

The author Paul