GoPro (NASDAQ: GPRO) is enacting a fresh round of job cuts. The planned layoff of roughly 270 employees at the action camera hardware and software maker is part of a broader attempt to cut expenses. The initiative will also include a reduction in program costs, GoPro said. All told, this should drive full-year adjusted operating expenses down to $495 million, and, according to the company, should not affect its development of new hardware and software products.
"We're determined that GoPro's financial performance match the strength of our products and brand," CEO Nicholas Woodman said. "Importantly, expense reductions preserve our product roadmap and we are tracking to full-year non-GAAP profitability in 2017."
The company expects to book charges of up to $10 million related to these actions. The charges will be recorded in the first quarter.
These new cost-cutting measures follow a similar initiative launched in November. In that effort, the company reduced its roughly 1,700-strong workforce by around 15%, and eliminated its entertainment division.
Additionally, the company updated its guidance for the current quarter. It now believes that revenue for Q1 will land in the upper part of the $190 million to $210 million range it previously cited. It also reiterated its belief that it will post an adjusted net profit for the year, although it did not specify an amount or range.
GoPro's stock price rose by 8% in after-hours trading following the announcement. In spite of the pop, shares of the onetime investor favorite are down by nearly 5% so far this year, and by almost 74% since its 2014 IPO.
10 stocks we like better than GoPro
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and GoPro wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of February 6, 2017
Eric Volkman has no position in any stocks mentioned.