The impact of the coronavirus has landed upon the head of GoPro, as the San Mateo-based maker of sport-adventure cameras said it will lay off more than 20% of its workforce, and change how it goes about selling its products because of the ongoing pandemic.
GoPro said the job cuts will amount to more than 200 employees being put out of work. The company estimates that the reduction in workers and office space will save it $100 million this year, and cut its overall expenses by $250 million in 2021. GoPro also said it will shake up its sales operation to focus on marketing its products directly to consumers via its website.
GoPro chief executive Nick Woodman made the changes public in a statement released late Wednesday. Woodman said the job cuts and other changes were being made directly because its business has been “negatively impacted by the COVID-19 pandemic.”
“We are crushed that this forces us to let go of many talented members of our team, and we are forever grateful for their contributions,” Woodman said.
GoPro’s job cuts and business changes were not well received on Wall Street, as the company’s stock price fell 4.7%, to $2.53 a share on Thursday.
Woodman said he would work without pay for the rest of 2020, and GoPro’s volunteered to give up their cash compensation for the remainder of the year.
GoPro also withdrew its previous revenue forecasts for the year, and said it now expects to report sales of $119 million for the first quarter of the year when its delivers its full quarterly results in late May.