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GoPro's Bad Year Gets Worse

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Wetworks

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Nov 27, 2016
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Just saw this pop up on my Twitter feed:

Bike Radar said:
GoPro cuts staff by 15-precent, closes entertainment division

It’s been an interesting couple of months for GoPro. In September the action camera giant released its highly anticipated Hero5 cameras and Karma Drone.

Then, 16-days after the Karma Drones went on sale, they were recalled for "intermittent power failure during operation," which literally caused the units to fall out of the sky. This was also closely followed by the release of the DJI Mavic Pro drone, which is similarly priced and according to the spec sheet flies farther, higher, longer, is smaller and offers autonomous "follow me flight" and object avoidance technology.

Now, the California-based tech brand has announced a company-wide restructure where it will be closing its entertainment division and reducing its workforce by 15-percent, letting about 200 full-time employees go.

This comes as the result of GoPro’s company stock losing half its value since the beginning of the year. In early November the stock dropped another 20-percent after the brand said its third-quarter sales were down 40-percent from the same time last year. GoPro is also facing a lawsuit that alleges the company misled investors about demand for the Karma. Amongst all these problems, GoPro president Tony Bates will be leaving the company at the end of the year.

This announcement came in a press release touting the Hero5’s success with Black Friday camera sales up more than 35-percent year-on-year at leading US retailers. GoPro reported that Thanksgiving through Cyber Monday sales of camera units at GoPro.com were similarly strong — up approximately 33-percent year-on-year.

GoPro is aiming to reduce operating costs by $650-million in 2017 through the reduction in staff and closing its video licensing division. These actions will cost the brand about $33-million, with most of the cost being in severance payments.

We have reached out to GoPro to find out what affect, if any, this will have on the company's two-year partnership with Velon and the UCI to supply cameras to WorldTour teams for on-bike coverage and are awaiting comment.
GoPro cuts staff by 15-precent, closes entertainment division - BikeRadar
 

fishycomics

Active member
Oct 7, 2012
5,073
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that bytes. love the cam but not the issues the Hero 5 has Lol very itneresting thank you for the article?
 

p fandango

New member
Jul 5, 2015
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the futures not looking good. Personally i Karma was a big mistake from the start, it was purely a grudge reaction to splitting up with DJI. & They are already market leaders, a new company to the drone field was never going to compete.

stock levels when the 5 Black/Session was launched were poor, no one could get one. They do seem to be in the shops now, but the hype is already over

cutting back on excess costs/salary is a good start, but how do you get the money coming back in. What now?
 

fishycomics

Active member
Oct 7, 2012
5,073
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SIs they not make Cuts by 40% last year, yes they did I remember reading that.. So maybe the Million Dollar loss of handing out Hero 5 blacks were a bad idea apon gopro that they had t odo, They should have said keep the Karma Grip instead, and when the Karma gets re-released, we'll send you the Karma less the grip. But they did the right thing to take a loss?

For cutting jobs, I do not like to see any one lose their Jobs [MENTION=19754]p fandango[/MENTION], no one.

Gopro may fold and htat will Byte
 

p fandango

New member
Jul 5, 2015
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found news they cut 7% of the work force in January

2,500 5 Blacks wouldn't of cost them much, retail price may be high but actual cost to make wouldn't be 50% of that I bet. I don't think we'll see Karma again

as a company failing job cuts are inevitable, higher costs going out than coming in is going to put the company out of business sooner
 

fishycomics

Active member
Oct 7, 2012
5,073
7
38
A lot can be said. I got my last gopro ifasked but my mind changes day to day.

7% was one , 15% was another and I guess we all read differen tarticles, that maybe the one I read was a combo of them all.

Win me back gopro. your cam fails to perfectly work today Lol
 

Privateer

Member
Apr 8, 2015
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6
UK
Now, the California-based tech brand has announced a company-wide restructure where it will be closing its entertainment division and reducing its workforce by 15-percent, letting about 200 full-time employees go.
That sucks, there is never a good time to lose your job but to have it announced just before Christmas is awful!

GoPro is also facing a lawsuit that alleges the company misled investors about demand for the Karma.
The Karma project was very secretive and we didn't actually know what the Karma was until September 2016, so it'd would be interesting to see how GoPro sold the idea of Karma to its investors.

The Karma drone and stabiliser are a good idea but GoPro needs to understand that people will no longer automatically buy a product just because it has the name "GoPro" on it, especially after the Karma drone recall. GoPro should have tried to flood the market with a better product at a much cheaper price so that it got a share of DJI's market.