GoPro's stock is taking a beating in after-hours trading after the action camera maker on Wednesday said it is reducing its workforce by roughly seven percent. As a result, it will incur restructuring costs of up to $10 million in the form of severance packages.
GoPro said in a statement that it expects revenue to be approximately $435 million for Q4 2015 and $1.6 billion for the calendar year (some analysts were expecting as much as $511 million in revenue during the quarter). The company said the Q4 results reflect lower than anticipated sales due to slower than expected sell through at retailers.
Analysts point to the launch of the Hero4 Session as a sore spot. The petite camera went on sale July 12 priced at $399.99 although in late September, GoPro slashed that price by $100. Even still, analysts at Morgan Stanley labeled the compact camera a flop. To help spur sales, GoPro docked another hundred bucks off the Hero4 Session 4 in early December, bringing it down to just $199.99.
GoPro said today that it'll incur a $21 million charge related to the price reduction.
The popular action camera maker made its debut on the stock market on June 26, 2014, priced at $24. Share value hit an all-time high in early October of that year at $86.97 before dropping to its as-of-writing value of just $14.61 (an all-time low).