GoPro Cuts More Than 20% of Workforce, Changes Sales Strategy

(Bloomberg) --

GoPro Inc. said it will cut more than 200 jobs, shift the company’s sales operation to market its digital adventure cameras directly to consumers and withdraw its 2020 financial guidance in response to the Covid-19 pandemic.

The operational changes, staff reductions of more than 20% and cuts to office space will save $100 million in 2020, and reduce expenses next year to $250 million, the San Mateo, California-based company said Wednesday in a statement. GoPro said its shift to direct sales will mean a stronger focus on its website. The company said it still will use retail outlets for a small number of regions where such sales are preferred by consumers.

“We have a clear opportunity to super-serve consumers’ demand for our products in a more direct and efficient manner which can have a positive impact on the profitability of our business,” Chief Executive Officer Nick Woodman said in the statement.

While withdrawing its forecast, GoPro said its expects to report first-quarter revenue of $119 million and an adjusted loss in the mid-30 cents a share. The company sold 700,000 cameras in the period, and said the staff and operational changes won’t affect its 2020 product road map, which will include new devices and services.

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