GoPro announces layoffs as action camera sales dwindle

PanARMENIAN.Net - Interest in GoPro's action cameras appears to be dwindling, as sliding revenue has forced the company into staff layoffs, Digital Spy reports.

The firm shed 7% of its workforce after downgrading its revenue forecast for the fourth quarter of 2015 from around $550 million to $435 million.

This would represent year-on-year decline of around 30% and fall short of the $690 million analysts were expecting.

GoPro blamed the cuts on "lower than anticipated sales" of its action cameras - but the fact it hasn't released a flagship product since the Hero 4 Black and Hero 4 Silver in October 2014 may have played a part.

Although the layoffs are expected to cost GoPro between $5 and $10 million in severance pay, the firm hopes that the move will "better align resources to key growth initiatives" in the long run.

GoPro is branching out into product categories beyond the action camera, including virtual reality hardware and quadcopters, as part of its efforts to stimulate growth.