Can GoPro Survive the COVID-19 Market Meltdown?
As part of a global restructuring effort, GoPro (NASDAQ: GPRO) last week stated it would lay off over 20% of its workforce to help it cut its operating expenses by $100 million this year and $250 million next year. CEO Nick Woodman said he also plans to forego his salary for the rest of 2020.
GoPro expects to take a charge of $31 million to $49 million from the restructuring, which will mainly impact its second-quarter results. To further cut costs, GoPro plans to mostly shift to a direct-to-consumer model and only continue selling to "leading retailers in key regions."
As part of the announcement, GoPro also provided its preliminary first-quarter numbers. Its revenue fell 51% annually to $119 million, broadly missing its previous guidance of $140 million to $160 million. However, it expects its adjusted loss to meet its previous forecast for a loss of $0.30 to $0.40 per share.
Source Fool.com
