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GoPro slashes workforce by 270 amidst continuing retrenchment

GoPro slashes workforce by 270 amidst continuing retrenchment

In trading Thursday, GoPro shares rose 15.8% to $8.51 but the stock hit an all-time low earlier this week and is still worth about half of where it was at its 52-week high. "Incremental job cuts preserve significantly more cash vs. our previous forecast, which is the biggest positive; however, in general, investors may not ascribe full credit to a move like this given the obvious headwinds it tends to signal regarding new product development and overall innovation for the future".

Chief Executive Nick Woodman said as much in a statement announcing the layoffs.

The latest move by GoPro will also include shutting down the entertainment division as it continues to streamline its products which will include new hardware and software as well as worldwide growth per an official press release.

That said, after news of more job cuts and the pre-announcement of first quarter earnings, GoPro stock jumped 11 percent and continues to be on the rise this morning. The average for US equities is 2.5 percent, according to data compiled by Bloomberg. Eight research analysts have rated the stock with a sell rating, twelve have assigned a hold rating, two have given a buy rating and one has given a strong buy rating to the stock.

GoPro primarily sells action-oriented cameras, but it recently made a foray into drones.

"We're trying to do fewer things better", Prober said in an interview on Wednesday.

More news: Red Cross reminds community to test smoke alarm bateries

GoPro has gone from a high-flying gadget maker with digital media potential to a bloated company being undercut by cheaper Asian rivals.

GoPro operated at a $373 million loss in 2016 due to, among other factors, production delays on the new Hero 5 camera and the recall of the Karma drone.

Roles were cut throughout the organization, he said. The second layoff, according to the company, was done after a thorough review of its operations. The San Mateo, California-based company also merged teams internationally where there were duplicate roles across regions.

What's the adverse impact of cutting loose of 270 workers, who were obviously doing something for the company? However, Kovler says management addressed both concerns with its new $100 million operating expenses cut and double-digit 2017 revenue growth projections.

A number of hedge funds have recently bought and sold shares of GPRO.

Woodman said that revenue in the current quarter was on track to be at the high end of the Californian company's forecast of $190 million to $210 million.

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