GoPro Adds New Chief Digital Officer, Cuts 200 Jobs, Amongst Major Restructure
GoPro said in a statement today that it will cut more than 200 jobs, shift the company’s sales operation to sell its digital adventure cameras directly to consumers, and withdraw its 2020 financial guidance in response to the Coronavirus pandemic.
Laying off 200 employees means a more than 20 percent reduction in the company’s workforce. The company said it plans to make office space reductions in five geographies as well as a reduction in operating expenses. These restructuring efforts will save $100 million in 2020, and reduce expenses next year to $250 million, the company said.
GoPro will continue to sell cameras, accessories and subscriptions, but it is switching to a direct-to-consumer operation with its own online store being the main retailer for its products. The company will stop selling its devices in many retail stores.
To lead the company's direct-to-consumer growth initiatives spanning hardware, software and subscription sales, GoPro has appointed Aimée Lapic as Chief Digital Officer.
"GoPro's global distribution network has been negatively impacted by the COVID-19 pandemic, driving us to transition into a more efficient and profitable direct-to-consumer-centric business over the course of this year," commented Nicholas Woodman, GoPro's founder and CEO. "We are crushed that this forces us to let go of many talented members of our team, and we are forever grateful for their contributions."
While withdrawing its forecast, GoPro said it expects to report first-quarter revenue of $119 million and an adjusted loss in the mid-30 cents a share. The company sold 700,000 cameras in the period, and said the staff and operational changes won’t affect its 2020 product road map, which will include new devices and services.