GoPro to Cut 15% of Jobs Amid Restructuring

GoPro Inc. on Wednesday said it would restructure its business, cutting about 15% of its workforce in an effort to lower expenses as it seeks profitability.

The companywide restructuring—which includes the closure of GoPro's entertainment division, facilities reductions and the elimination of more than 200 full-time positions plus the cancellation of open positions—will reduce 2017 adjusted operating expenses to about $650 million and bring the company back to earning an adjusted profit.

In addition, GoPro President Tony Bates will depart at the end of the year.

GoPro shares, which have lost more than half their value over the past year, rose 3.4% in premarket trading to $10.17.

GoPro expects about $24 million to $33 million in restructuring charges, including $13 million to $18 million of cash expenditures from the job cuts and $11 million to $15 million of noncash expenditures, mostly from stock-based compensation expenses and accelerated depreciation associated with office consolidations. The company anticipates booking most of the restructuring charges in the fourth quarter.

GoPro also said Wednesday that its camera sales for the week of Black Friday were up more than 35% year-over-year at leading U.S. retailers. Thanksgiving through Cyber Monday sales of camera units at GoPro.com increased 33% year-over-year.

"We have a lot of work to do to finish the quarter and our fiscal year," Chief Executive Nicholas Woodman said, but "consumer demand for GoPro is solid and we've sharply narrowed our focus to concentrate on our core business."

Write to Anne Steele at Anne.Steele@wsj.com

(END) Dow Jones Newswires

November 30, 2016 08:15 ET (13:15 GMT)

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