GoPro Inc (NASDAQ:GPRO) is laying off up to 300 people.
The recent report claims that between 200 and 300 employees of GoPro Inc are getting the ax. The majority of these employees are from the company’s drone division, which likely hasn’t been performing as well as GPRO hoped it would.
According to this recent report, the employees in the layoff have already been sent home, but that the company is going to keep them on its payroll until mid-February. The reason may be so that it doesn’t announce the news until after CES.
GoPro Inc’s attempts to expand its business to other areas haven’t been going well for it. The Karma drone that came out last year had its own slew of problems and attempts to break into VR also didn’t do much for it. This resulted in the company firing 370 people from their jobs in late 2016 and early 2017.
It appears that the report of drone job cuts is also just part of the company pulling back after trying to expand its business to new areas. An internal memo about the layoffs states that they will allow GoPro Inc “to better align our resources with business requirements,” reports Tech Crunch.
GoPro Inc is currently set to release its next earnings report in mid-February. Just based on when it plans to cut employees in the layoffs from the payroll, it’s likely that we will hear more about the decision when it releases its next earnings report.
GPRO stock was down slightly as of Friday morning.
As of this writing, William White did not hold a position in any of the aforementioned securities.