GoPro's Stock Jumps After Announcing a 15% Workforce Reduction As Part Of Restructuring

By Markets MarketWatch Pulse

Shares of GoPro Inc. jumped 3.3% in premarket trade Wednesday, after the action camera maker announced a restructuring that will include the cutting of 200 jobs, or 15% of its workforce. GoPro said the restructuring, which will include the closing of its entertainment division and facilities reductions, will lower 2017 operating expenses by $735 million as the company aims to return to adjusted profitability in 2017. The company expects to record charges of $24 million to $33 million for the restructuring, including $13 million to $18 million for the job cuts. Tony Bates will depart the company at the end of the year. Separately, GoPro said Black Friday camera sales at U.S. retailers rose over 35% from a year ago. "Consumer demand for GoPro is solid and we've sharply narrowed our focus to concentrate on our core business," said Chief Executive Nicholas Woodman. The stock had tumbled 45% year to date through Tuesday, while the SPDR Technology Select Sector ETF has fun up 12% and the S&P 500 has gained 7.9%.

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