GoPro Inc said on Wednesday it would cut about 15 percent of its workforce as the company restructures its once fast-growing action camera business.
GoPro said it will cut about 200 full-time positions, cancel open positions and shut down its entertainment division as part of the restructuring.
The company said it expects to incur about $24 million to $33 million in restructuring charges, mostly in its fourth quarter.
GoPro announced earlier in November that it was recalling about 2,500 units of its recently launched Karma drone. The company found that some drones were losing power mid-flight.
The company launched the Karmain September amid weak demand for its popular action cameras. Even after new product launches, competition from cheaper devices stifled GoPro's ability to grow sales.
GoPro reported a third-quarter loss and a 40% year-on-year slump in revenue, and provided guidance for revenue in the important holiday quarter that was weaker than analysts had expected.
GoPro's shares were up 3.9 percent at $10.22 in premarket trading.
(Reuters reporting by Anya George Tharakan in Bengaluru; Editing by Sriraj Kalluvila)
Now see the highest-paying companies of 2016:
Melania Trump is threatening to sue over the YouTube video speculating that her son has autism
AT&T's new $35 streaming TV package is the key to ditching your $100-plus cable bill and still watching whatever you want
A potential nightmare scenario has arrived for the electric-car industry