On Wednesday, wearable camera maker GoPro Inc. (GPRO - Free Report) announced that it will be cutting 15% of its total workforce as part of a broader, company-wide restructuring effort that also includes shutting down its entertainment division and reducing office space. GPRO stock, which has lost roughly half its value so far this year, has been in the green today, up almost 3% in afternoon trading on the news.
GoPro’s chief financial officer, Brian T. McGee said that through restructuring, the company hopes to reduce operating expenses by about $650 million. GoPro also announced that its president, Tony Bates, will be leaving the company at the end of the year.
Along with cutting jobs, the company decided to close its entertainment business. GoPro had made key hires from HBO, Hulu, and MTV in hopes of becoming a media company and to develop original content, but with the division’s shut down, it looks like this goal was unsuccessful.
Since it went public in 2014, GoPro has seemingly faced struggle after struggle, and this year has been particularly hard for the camera maker, as dwindling customer traction has deeply affected its sales. The company is hoping that its new line of products will help boost profit, despite some major malfunctions. Earlier this month, GoPro recalled 2,500 of its Karma drones because they were falling out of the sky.
Along with a new slate of products, GoPro is also setting its sights on software, showing how the company is slowly narrowing its core business focus “We are headed into 2017 with a powerful global brand, our best-ever products, and a clear road map for restored growth and profitability in 2017,” said founder and CEO Nicholas Woodman.
In addition to these major business announcements, GoPro gave a glimpse of its Black Friday sales. Camera sales climbed over 35% year-over-year at top U.S. retailers like Target (TGT - Free Report) and Walmart (WMT - Free Report) , and cameras that were bought through GoPro’s website from Thanksgiving to Cyber Monday increased about 33% year-over-year.
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