(Reuters) - GoPro Inc said on Monday it expects fourth-quarter revenue to fall below its earlier forecast and lowered the price of its Hero6 cameras due to weak demand, and the action camera-maker also said it would cut more than 250 jobs.
GoPro, whose cameras and drones are mostly used by sports junkies and travel enthusiasts, cut the price of its Hero6 cameras to $399 from $499 and said that would hurt revenue by around $80 million in the current quarter.
The company now expects fourth-quarter revenue of $340 million, compared with its projection of $470 million, plus or minus $10 million, in November.
GoPro, once a Wall-Street favorite, has been facing a decline in demand for its cameras and karma drones for several quarters, including for its Hero5 cameras in the latest holiday season.
"Despite significant marketing support, we found consumers were reluctant to purchase HERO5 Black at the same price it launched at one year earlier," Chief Executive Nicholas Woodman said in a statement.
Morgan Stanley said in a research note earlier Monday that the price cut for the Hero6 camera would make earnings growth difficult in fiscal 2018.
More From This Section
GoPro said it would lower its workforce to fewer than 1,000 employees from 1,254 currently. It expects a restructuring charge of $23 million to $33 million, including about $13 million to $18 million for the job cuts, in the first quarter.
TechCrunch said last week that GoPro cut 200-300 jobs from its aerial division, which makes the Karma drones.
Trading in the company's shares were halted ahead of the market opened.
(Reporting by Laharee Chatterjee in Bengaluru; Editing by Savio D'Souza)
Disclaimer: No Business Standard Journalist was involved in creation of this content
