GoPro Intends To Reduce Its Global Workforce By Approximately 4% In Order To Reduce Operating Costs And Drive Operating Leverage - Filing
Portfolio Pulse from Benzinga Newsdesk
GoPro announced a workforce reduction of about 4% to cut operating costs and improve operating leverage. The restructuring will cost an estimated $7.5 million, with $2.0 million in cash expenditures in Q1 2024 due to layoffs. The company also plans to reduce office space, leading to impairment charges of approximately $3.3 million in Q1 2024, with $2.2 million of these charges expected through January 2027. These restructuring charges will significantly impact GoPro's GAAP results for Q1 of the fiscal year ending December 31, 2024.
March 26, 2024 | 9:16 pm
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GoPro plans to reduce its workforce by 4% and decrease office space to lower operating costs, incurring $7.5M in restructuring charges, affecting Q1 2024 GAAP results.
The announcement of workforce reduction and significant restructuring charges is likely to create uncertainty among investors about GoPro's short-term financial health and operational efficiency. This could lead to negative sentiment and a potential decrease in stock price in the short term. The impact on GAAP results for Q1 2024 further emphasizes the financial strain these changes will impose on the company.
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