GoPro announces restructuring, workforce reduction of 15%
GoPro announced a company-wide restructuring that will reduce full-year 2017 non-GAAP operating expenses to approximately $650M (GAAP: $735M) and achieve its goal of returning to non-GAAP profitability in 2017. The restructuring includes the closure of its entertainment division, facilities reductions, and the elimination of more than 200 full-time positions plus the cancelation of open positions for a reduction in force of approximately 15%. Additionally, Tony Bates will depart his position as president of the company at the end of the year. "My time at GoPro has been an incredible experience," said Tony Bates. "In the past three years, GoPro has seen enormous progress in camera technology, software and international growth. Today GoPro has a solid leadership team deeply focused on its core business and profitability." GoPro estimates that it will incur total aggregate charges of approximately $24M-$33M for the restructuring, including approximately $13M-$18M of cash expenditures as a result of the workforce restructuring, substantially all of which are severance costs, and approximately $11M-$15M of non-cash expenditures, consisting primarily of stock-based compensation expense and accelerated depreciation associated with office consolidations. The company expects to recognize most of the restructuring charges in Q4 2016. "Consumer demand for GoPro is solid and we've sharply narrowed our focus to concentrate on our core business," said Nicholas Woodman. "We are headed into 2017 with a powerful global brand, our best ever products, and a clear roadmap for restored growth and profitability in 2017."