GoPro (Again) Cuts Jobs Following First-Quarter Earnings
GoPro’s pre-announced its first-quarter earnings and to sum it up, they are planning to cut 270 more jobs. If we are still keeping score, that adds up to 570 jobs, with 100 in January last year and another 200 in November.
The steady hemorrhaging of positions can be blamed on a few different narratives. Many look to the lackluster 2015 holiday sales that were capped off with a recall of a long-awaited Karma drone. Others see the companies 2016 stock nosedives as the blatant signs for a retrenchment.
For the most part, it seems the cuts will aim to downsize the company’s virtual reality and broadcasting sectors, something that could be labeled ambitious to begin with. Yes, those technologies seem to be the natural move for a profitable company looking to innovate, but that doesn’t quite describe current position of GoPro.
However, GoPro still feels confident going forward, and aptly so there really isn’t anywhere to go but up for the once might action cam company. Founder and CEO Nick Woodman outlined the direction of the brand in a statement that reflected an otherwise upbeat attitude.
“We’re determined that GoPro’s financial performance match the strength of our products and brand,” Woodman said. “Importantly, expense reductions preserve our product roadmap, and we are tracking to full-year non-GAAP profitability in 2017.”
Moving forward, it appears that Woodman and company are looking to focus on their foundation before building up again. Woodman explained at the Consumer Electronics Show in January that the company is “guilty of having reached too far and we stumbled.”
With fierce competition in the drone space from DJI and Parrot, it seems like the right move for GoPro to take a step back and focus on what they do best. However, the saturation of marginally inadequate action cams at a significantly lower price will make GoPro’s climb back to the top increasingly difficult.