GoPro, the action camera company, is currently facing significant challenges as it undergoes a critical restructuring phase. The company has recently announced plans to reduce its workforce by approximately 26%. This decision follows an earlier announcement in August about a 15% workforce reduction. These layoffs are part of a broader effort to address financial difficulties and streamline operations. Earlier in the year, GoPro had already implemented a 4% reduction in March.
Brian McGee, GoPro’s chief financial officer, acknowledged the difficulties the company has encountered in 2024. During an investor call in August, McGee cited various challenges, including a persistent decline in camera sales through GoPro.com, global macroeconomic concerns, increasing competition from brands like DJI and Insta360, and adverse foreign exchange rate fluctuations in China and Japan. As a result, McGee projected a revenue decline of $20 million to $25 million for the latter part of 2024.
The layoffs reflect the broader difficulties GoPro faces in today’s action camera market. Once a sole contender, the brand now faces stiff competition from established rivals that have captured significant market share by offering reliable and competitively-priced products.
Despite these challenges, GoPro remains a well-respected name in the industry, recognized for its high-quality cameras that once redefined action sports videography. In order to regain its footing in this increasingly competitive landscape, GoPro will need to innovate and address the evolving needs of its global consumer base.
