The well-known action camera manufacturer GoPro announced its plan to cut 15 percent of its workforce by the end of this year. The decision is part of the company's restructuring plan to reduce operating costs.
It will impact 139 positions. The company released these details in a filing with the US Securities and Exchange Commission (SEC).
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Restructuring Plan To Cost Up To $7 Million
The company seeks to take charges for the restructuring plan in the range of $5 million (roughly Rs. 41.8 lakh) to $7 million (roughly Rs. 58.6 lakh). Cash expenses are expected to be recognized in the third quarter of 2024 at $1 million (roughly Rs. 8.3 crore) and in the fourth quarter at about $4 million (roughly Rs. 33.5 lakh) to $6 million (roughly Rs. 50.2 crore).
Layoffs To Affect 139 Positions
The layoffs will affect around 139 positions out of GoPro’s 925 full-time staff. The process is scheduled to begin in the third quarter of 2024 and will be complete by the end of the year.
This is the second time GoPro has cut its workforce this year.Earlier in March, it reduced it by 4 percent as part of its initial efforts to streamline operations. These changes come despite a decrease in salary and increased working costs, mirroring broader industry issues.
Revenue Report For Second Quarter
Earlier this month, GoPro revealed revenue of $186 million for the second quarter of this year, a notable 22.7% drop from last year. At the same time, operating expenses increased to $103 million, 5% from last year.
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GoPro's patent case
In May, the US International Trade Commission announced that it was opening an investigation into GoPro's allegations that Chinese company Arashi Vision was infringing on its patents for cameras, systems, and accessories as the company brought similar products into the United States.
Companies layoff continues
Layoffs have not only affected GoPro but every industry . Even the largest companies across various industries have let go of workers for a variety of reasons in different areas. Among the businesses that fired several people in 2024 were Google, Tesla, Dyson, General Motors, Nike, and UKG.
Inputs by Agencies
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