California-based GoPro to cut jobs, eliminate drone product


The San Mateo-based company GoPro is expected to reduce the number of its workers in the coming months, according to a report on NBC Los Angeles' website.

Citing a decline in holiday sales and other revenue-generating activities in the fourth quarter of 2017, GoPro says it will reduce its number of employees to fewer than 1,000, amounting to a drop of nearly 20 percent of its workforce. That will also reduce the overall operating expenses by $80 million dollars over the previous year, the article on the local NBC affiliate's website says.

This isn't GoPro's first attempt at using layoffs as a cost-cutting measure, NBC Los Angeles reports. In 2016, the company eliminated nearly 15 percent of its workers in a move that aimed to help boost the company's finances.

In addition to the recently announced reduction in the number of employees, GoPro will also take other cost-saving measures to help balance their overall budget. ABC Los Angeles reports that Nicholas Woodman, GoPro's founder and current CEO, will have his 2018 cash compensation reduced to a mere $1 dollar. Additionally, the article states, GoPro will no longer invest in the drone marketplace. It will, however, continue to support and assist those customers who previously purchased GoPro's drone product, Karma.

GoPro's roots in California can be traced back to the company's founding, according to ABC Los Angeles. The news organization reports that Woodman attended the University of California, a prime location where the surfing enthusiast could practice his passion in his spare time. Quoting Woodman from a 2013 Forbes article, ABC Los Angeles recounts the GoPro CEO saying, "If I didn't follow my passion for surfing ... I would have never come up with the concept to make a wrist camera."

According to GoPro's website, the company, founded in 2002, has since sold over 26 million GoPro cameras in more than 100 countries around the world. In addition to their headquarters in San Mateo, the company also has offices in San Diego.