GoPro announces restructuring plan, 15% workforce reduction

In a regulatory filing, GoPro stated, “GoPro previously announced during its August 6, 2024 Second Quarter earnings call its intent to reduce operating expenses by approximately $50 million from projected fiscal 2024 expenses to $320 million +/- $5 million in fiscal 2025. On August 19, 2024, GoPro announced that its Board of Directors of the company approved a restructuring plan to help achieve that goal. The Restructuring Plan is anticipated to entail a reduction in force of approximately 15% from our ending second quarter headcount of 925 full-time employees beginning in Q3 2024 and is expected to be substantially completed by the end of 2024. The Restructuring Plan is expected to result in an estimated aggregate charge of in the range of $5 million to $7 million. Cash expenditures will be approximately $1.0 million of the estimated aggregate charge in the third quarter of 2024 and approximately $4 million to $6 million of the estimated aggregate charges in the fourth quarter of 2024. The estimates of the charges and expenditures that the company expects to incur in connection with the above, and the timing thereof, are subject to a number of assumptions, including local law requirements in various jurisdictions, and actual amounts may differ materially from estimates. The company expects to incur the majority of the restructuring and related charges in the fourth quarter of the fiscal year ended December 31, 2024.”