GoPro Announces Layoffs and Cost Cuts But Reiterates Revenue Guidance for Q1 (Mar 15, 2017)

GoPro today both reiterated its revenue guidance for Q1 and announced fairly significant cost cuts including layoffs in an attempt to get back to profitability after five straight quarters of net losses. It will eliminate 270 current and planned positions, which equate to roughly 17% of its headcount at the end of Q4, and says full year operating expenses will be $582 million, which compares to $835 million in 2016 and $618 million in 2015, so a fairly significant cut. The fact that it still expects to hit the same revenue numbers makes me wonder what those people were doing that they can be so easily dismissed without impacting revenue growth. Operating expenses are weighted towards R&D and sales and marketing costs, so the cuts will likely hit hardest in those two areas, one of which would likely impact longer term sales while the other would be likelier to hit short term sales. So color me skeptical that GoPro can make these cuts and still hit its revenue numbers for the year, although investors clearly feel differently (the stock is up over 8% after hours).

via GoPro

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• GoPro

• Financials
• Layoffs

• Hardware is Hard

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