GoPro cutting about 100 jobs after weak 4Q sales

AP News
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Posted: Jan 13, 2016 5:30 PM
GoPro cutting about 100 jobs after weak 4Q sales

NEW YORK (AP) — Wearable camera maker GoPro says it will eliminate about 100 jobs after its fourth-quarter sales fell far short of its expectations.

GoPro says fourth-quarter revenue was $435 million instead of the $500 million to $550 million it forecast in October. The company lowered the price of its new Hero4 Session camera after saying it made the product too expensive, which reduced its fourth-quarter revenue by $21 million.

FactSet says analysts expected GoPro to report $521.2 million in revenue.

The San Mateo, California, company had around 1,500 employees at the end of 2015 after hiring more than 500 people that year. It is cutting 7 percent of its jobs, or around 100 positions.

GoPro's products are popular with extreme sports enthusiasts, but it faces competition from smartphones and other wearable gear.

It was already predicting a drop in sales compared to last year because it didn't launch a new product in the fourth quarter. The new forecast means revenue dropped about 31 percent from the fourth quarter of 2014.

GoPro shares closed at $14.61 on Wednesday, down 71 percent over the past 12 months. The stock skidded 22 percent to $11.40 in aftermarket trading.

GoPro Inc.'s June 2014 initial public offering priced at $24 per share.