GoPro said on Wednesday it would cut about 15% of its workforce as the company restructures its once fast-growing action camera business.
GoPro (GPRO) said it will cut about 200 full-time positions, cancel open positions and shut down its entertainment division as part of the restructuring. Its president, former Microsoft executive Tony Bates, will resign his position at the end of December.
The moves are intended to help cut 2017 GAAP operating expenses by approximately $735 million, according to a statement issued by the company.
GoPro said it expects to incur about $24 million to $33 million in restructuring charges, mostly in its fourth quarter. Most of those are severance costs.
The revelation came along with a declaration: GoPro’s digital camera sales grew approximately 33% over the critical Thanksgiving holiday shopping weekend. “Consumer demand for GoPro is solid, and we’ve sharply narrowed our focus to concentrate on our core business,” said GoPro founder and CEO Nicholas Woodman, in the statement.
GoPro‘s shares were up 2.7% at $10.10 in premarket trading.