GoPro has truly seen better days as the company has reported that it expect sales from the holiday quarter to be “lower than anticipated”.
In a press release issued by the company, GoPro revealed that the company expects a a fourth quarter revenue of approximately USD 435 million, which is lower than anticipated due to slower than expected sales. Factors such as the multiple price cuts on the Hero4 camera as well as the USD 30-35 million charge for excess inventory and order commitments also affected the company’s fourth quarter revenue.
With the company in decline, GoPro has announced that it will be layoff 7% of its 1,500 people strong workforce. This move is expected to cost the company roughly USD 5 -10 million, with a significant chunk of the money going to severance pay.
Reaction to both GoPro underperforming as well as the staff layoff hasn’t exactly been encouraging as the company’s stock dropped to USD 10.87 per share after the announcement, which is an all-time low for GoPro.
Whatever the case, it seems that GoPro will have a rough year ahead of them.
Source : GoPro, TechCrunch
