GoPro reducing global workforce from 1,254 employees to 1,000
GoPro said its "sharper focus" will enable an $80M reduction in operating expenses compared to 2017 levels, resulting in a target operating expense level of below $400M for 2018 on a non-GAAP basis.The lower non-GAAP operating expense target will be achieved through a variety of strategies, including: GoPro is reducing its global workforce from 1,254 employees as of September 30, 2017 to fewer than 1,000 employees worldwide; GoPro founder and CEO Nicholas Woodman will reduce his 2018 cash compensation to $1. The company explained, "Although Karma reached the #2 market position in its price band in 2017, the product faces margin challenges in an extremely competitive aerial market. Furthermore, a hostile regulatory environment in Europe and the United States will likely reduce the total addressable market in the years ahead. These factors make the aerial market untenable and GoPro will exit the market after selling its remaining Karma inventory. GoPro will continue to provide service and support to Karma customers." A restructuring of GoPro's business will result in an estimated aggregate charge of $23M-$33M, including approximately $13M-$18M of cash expenditures as a result of a reduction in force. GoPro expects to recognize most of the restructuring charges in Q1 of 2018.