The hits keep coming for GoPro. The action-camera company announced Wednesday (March 15) that it’s going to cut roughly 270 employees. The news came as part of a press release reaffirming its intention to achieve some measure of profitability in 2017.
This is the third time in about 14 months that GoPro has cut over 100 staff members as it struggles to expand sales for its diminutive cameras. (The company currently employs roughly 1,500 people, according to Business Insider.) It previously cut the majority of its entertainment division, those tasked with turning all the user-generated and self-produced content shot on its cameras into something people would want to watch. GoPro didn’t specify what roles were involved in this round of layoffs, only that the cuts were intended to produce a ”reduction in operating expenses.” GoPro added that it will make about $10 million in severance payments.
In September, GoPro launched Karma, a drone intended to let users take footage of themselves in new and interesting ways. It was seen as a way for the company to expand beyond its core camera business, which has seen enthusiasm among users wane in recent years. But the $800-$1,100 drone did not enthrall critics, offering little to differentiate itself from other, more established drone manufacturers, and in November—on the eve of the US election—GoPro issued a recall on the drone over safety concerns. According to The Verge, it had sold only 2,500 drones in the US. (The Karma went back on sale in February.)
GoPro’s stock has hit record lows in recent months, and finished the day trading at $7.35. At the height of the optimism around its future, its share price was over $85, back in October 2014. This evening’s news, however, was well received by investors, with shares up about 8% in after-hours trading.