Today, GoPro (NASDAQ:GPRO) disclosed plans to reduce its global workforce by around 4%, a strategic move aimed at trimming operating costs and enhancing operating efficiency. The action is part of a broader restructuring initiative that the company expects to incur approximately $7.5 million in total costs.
The workforce reduction is anticipated to lead to about $2.0 million in cash expenditures within the first quarter of 2024. These expenses are directly associated with the severance costs that will arise from the reduction in force.
GoPro also outlined additional expected costs pertaining to the downsizing of office space, which are projected to contribute to impairment charges of roughly $3.3 million, also in the first quarter of 2024.
Furthermore, the company estimates ongoing charges related to office space amounting to approximately $2.2 million, which will be spread out until January 2027. GoPro anticipates that these restructuring efforts will be substantially reflected in its GAAP financial results for the first quarter of the fiscal year ending December 31, 2024.
This decision comes as GoPro navigates the competitive landscape of the technology sector, seeking to position itself for sustained financial health and operational agility. The move to reduce the workforce and minimize office space is expected to contribute to the company's goal of achieving stronger operating leverage.
The information provided in this article is based on a press release statement, and it is intended to present a clear and factual account of GoPro's recent corporate restructuring announcement.
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