Wearable action camera maker GoPro said it would cut about 15 percent of its workforce and shut down its entertainment business, as the one-time Wall Street favorite looks to lower costs and return to profitability.
Shares of the company, which had about 1,539 employees at the end of 2015, were up 4 percent at $10.22 in premarket trading on Wednesday.
GoPro has been struggling with slowing sales of its wearable action cameras and the recall of its recently launched Karma drones.
The company said on Wednesday it will cut about 200 full-time positions, cancel open positions and shut down its entertainment division, which produces original content, as part of the restructuring.
The restructuring is expected to help GoPro achieve its goal of returning to adjusted profitability next year.
GoPro also said President Tony Bates will step down at the end of the year.
The company said it expects to incur about $24 million to $33 million in restructuring charges, mostly in its fourth quarter ending December.
GoPro also said camera sales in the Black Friday week were up more than 35 percent from a year earlier at leading U.S. retailers.
(Reporting by Anya George Tharakan in Bengaluru; Editing by Sriraj Kalluvila)