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GoPro to cut 7% of workforce; shares plunge 25%

GoPro Woodman CEO future competition_00022811
GoPro CEO Nick Woodman.

GoPro can’t catch a break.

The action camera company said it would cut 7% of its workforce, or roughly 100 employees. (The company said it had more than 1,500 workers at the end of 2015.)

Shares fell nearly 25% after hours.

GoPro also lowered its guidance for the fourth quarter of 2015 and the full year, saying fourth-quarter sales of its cameras were weaker than expected.

GoPro(GPRO, Tech30) has had a tumultuous run: The company’s stock surged after a blockbuster IPO in 2014 but has been freefalling in recent months. Shares have plunged 19% so far this year — and 73% in the last six months.

Related: Is the IPO market dead?

Many have questioned whether GoPro’s once-hot Hero cameras are actually just a fad. It’s also facing increased competition in the action camera market from companies like Sony(SNE), Xiaomi and Polaroid.

GoPro is expected to introduce the Karma, a drone, this year, which is yet another crowded space. The company released a video about the Karma on its YouTube channel last month.

CNNMoney (New York) First published January 13, 2016: 5:46 PM ET



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