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 global growth per an official press release.
"We are confident that we are not making those trade-offs", Chief Operating Officer Charles "C.J".
"It is far less risky to evolve than to be revolutionary; we feel we are more capable to expand the consumer experience with the reduced team that we have now".
However, investors might want to take these comments with a grain of salt. The business's revenue for the quarter was up 23.8% on a year-over-year basis. It experienced production delays on its Hero5 camera. The Karma drone recall added to the companies problems. It dropped the price - twice - on an earlier edition of a camera. The cost of the new restructuring is estimated to be at $10 million, but most of this would be for severance costs.
The self-mounted camera company said it will lower its full-year operating expenses "to below $495 million without impacting the company's roadmap for new hardware and software products". 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.
The company has always been dogged by skepticism from investors and analysts that it can be more than a one-trick pony. GoPro traded as high as $8.64 and last traded at $8.46, with a volume of 2,833,759 shares. It has attracted short sellers, too, with 30% of its shares now being shorted. Woodman pointed out to analysts that the company launched a drone, new cameras and an editing software past year. It also comes after the company declared the closure of its entertainment division, as first reported by MarketWatch. GoPro's stock soared 30% after its debut.
GoPro has had a rough go of it ever since going public. Some of those bets didn't work out.
"We're determined that GoPro's financial performance match the strength of our products and brand".
In order to reduce those costs, GoPro is cutting about 270 jobs, and is also cutting program costs. "This cost cut appears to be excising the last of the non-core spending since the IPO", wrote Barclays analyst Joseph Wolf.
GoPro (NASDAQ:GPRO) last released its earnings results on Thursday, February 2nd.
Brad Erickson, an analyst at Pacific Crest Securities said GoPro's announcements were probably aimed at short-sellers, or investors who are betting against the company.