Making the announcement on Wednesday, GoPro said it plans to further reduce non-headcount related operating expenses to $250 million in 2021.
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“GoPro’s global distribution network has been negatively impacted by the COVID-19 pandemic, driving us to transition into a more efficient and profitable direct-to-consumer-centric business over the course of this year,” Nicholas Woodman, GoPro’s founder and CEO, said in a statement.
“We are crushed that this forces us to let go of many talented members of our team, and we are forever grateful for their contributions,” Woodman said.
The San Mateo, California-based company said it will continue to sell to select leading retailers in key regions where consumers prefer to purchase offline or indirectly.
However, the company will be shifting primarily to consumer-direct sales to drive growth in regions where GoPro.com already enjoys a strong share of the market.
To lead the Company’s direct-to-consumer growth initiatives spanning hardware, software and subscription sales, GoPro appointed Aimee Lapic as Chief Digital Officer.
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Lapic brings years of experience building successful digital businesses, most recently as Chief Marketing Officer for Pandora, and prior to that at Banana Republic where she was Chief Marketing Officer and General Manager for BananaRepublic.com.
GoPro also shared that, at his request, Woodman will forego the remainder of his salary through the end of 2020. Additionally, as of April 14, 2020, GoPro’s Board of Directors volunteered to forego the remainder of their cash compensation through the end of 2020.
GoPro confirmed these reductions will not impact its 2020 product roadmap, which includes new hardware, software and subscription products that will serve both GoPro camera owners and smartphone-only users.
Additionally, GoPro is withdrawing its Q1 and full-year 2020 guidance due to global uncertainty related to the COVID-19 pandemic.
The company expects to report revenue of approximately $119 million for Q1 and an adjusted loss in the mid-30 cents per share.