GoPro Slashes 20% of Workforce, Pivots to Direct-to-Consumer Sales
GoPro lays off over 200 employees and cuts office space to save $100 million in 2020, largely driven by pandemic-related retail disruptions. The action camera maker is also shifting its primary sales strategy away from physical retail stores to focus on direct online sales.
GoPro lays off more than 200 employees, reducing its total workforce by 20% as part of a major restructuring effort. The company reduces office space across five geographies and targets a $100 million reduction in non-GAAP operating expenses for 2020. Additional non-headcount expense cuts bring the 2021 operating expense goal down to $250 million.
The company shifts its business model to a direct-to-consumer approach, making GoPro.com the primary storefront. While GoPro maintains partnerships with select retailers in profitable regions, it pulls out of many traditional physical retail locations to keep higher profit margins. This transition accelerates because the COVID-19 pandemic severely disrupts GoPro's global distribution network.
Executive leadership takes significant pay cuts in solidarity with the laid-off employees, with CEO Nicholas Woodman and the board of directors forfeiting all cash compensation for the rest of the year. GoPro withdraws its annual financial guidance and now projects first-quarter revenue of $119 million with a non-GAAP EPS loss of $0.30 to $0.40 per share.