GoPro slashes staff, posts lower than expected sales figures

GoPro is in the middle of a large downturn, cutting back staff and posting lower than expected sales.

@smithymayo
Published Thu, Jan 14 2016 6:31 AM CST   |   Updated Sat, Aug 8 2020 10:29 AM CDT

While the GoPro Hero4 product release has been named as partly to blame for a downturn in sales, Business Insider reported that GoPro has sent home 7 percent of its staff amidst low sales figures.

GoPro slashes staff, posts lower than expected sales figures 050 | TweakTown.com
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While this company was initially forecasted to post a Q4 revenue figure of $511 million it is now expected to bring in $435 million, helping make a total revenue haul of $1.6 billion in 2015. Explaining this downturn in sales, the GoPro stated that its "Fourth quarter revenue reflects lower than anticipated sales of its capture devices due to slower than expected sell through at retailers, particularly in the first half of the quarter."

Alongside GoPro shares free falling by 23 percent recently, it's expected to face bills amounting to between $5 million and $10 million in severance costs due to the layoffs, while also dealing with $21 million over Hero4 price changes enacted in December 2015.

This by no means marks the death of GoPro whatsoever, but I'm interested to see what they do with this new challenge.

GoPro slashes staff, posts lower than expected sales figures 049 | TweakTown.com

I'm a competitive gamer and was an eSports employee. Recent changes have seen me hang up the mouse and move over to the technology world, covering all news for TweakTown, ranging from gaming news to opinion articles and the latest tech releases. Expect to see a few different articles on international eSports news and competitive game releases, as well as audio and mobile device content.

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