GoPro plans on eliminating 270 positions as it tries to turn itself around. In a release containing guidance of its first quarter results, the company announced that the job cuts were part of cost-cutting measures that also affected programs and other expenses to “preserve our product roadmap.” In doing so, GoPro said it’s on track to “full year non-GAAP profitability in 2017.”
The layoff of 270 positions, both in headcount and open roles, comes nearly five months after GoPro parted ways with 15 percent of its staff (approximately 200 people) and eliminated its entertainment division. Ten months prior to that, the company also let go of 7 percent of its employees, so the aggressive push to being profitable is likely taking a heavy toll on morale and staffing.
GoPro expects to incur total aggregate charges of up to $10 million for the latest round of restructuring, with most of it due to severance costs.
In the fourth quarter, GoPro reported $540 million in revenue, a 23.8 percent annual increase, but still had a $115.7 million GAAP net loss ($42.3 million non-GAAP net income). The company affirmed on Wednesday that its first quarter revenue will be “in the upper end of its previously announced $190 million to $210 million range.”
“We currently have no need to draw on our credit facility and we expect to be EBITDA positive for full-year 2017,” remarked GoPro chief financial officer Brian McGee.