Bad news for GoPro investors: The purveyor of wearable action cameras said fourth-quarter 2015 sales would be below expectations — leading it to cut about 100 jobs — and also announced that entertainment unit boss Zander Lurie has resigned.
Shares of GoPro fell more than 23% in after-hours trading Wednesday after the disclosures.
Lurie, who joined GoPro in November 2014, will become CEO of online-survey company SurveyMonkey. He was named exec chairman of SurveyMonkey last May, after the death of CEO Dave Goldberg; in taking over the chief exec role, Lurie replaces Bill Veghte, the former HP exec SurveyMonkey hired in July.
GoPro, in a press release, said it expects revenue to be approximately $435 million for the fourth quarter of 2015 (compared with previous guidance of $500 million to $550 million) and $1.6 billion for the calendar year. The company attributed lower-than-expected Q4 revenue to slower sales of its capture devices at retailers, particularly in the first half of the quarter.
Lurie will step down as senior VP of the company’s GoPro Entertainment unit and has been appointed to serve on GoPro’s board. His exit after building up the device maker’s media division for a little over a year raises questions about the future of GoPro’s strategy in the segment.
Before joining GoPro, Lurie was an executive at Guggenheim Digital Media and before that was an executive at CBS, which he joined with the Eye’s acquisition of CNet Networks where he served as CFO and head of corporate development.
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With the earnings miss, GoPro said it would cut 7% of its workforce, which has grown by more than 50% annually to more than 1,500 employees at the end of 2015. The company estimated it will incur approximately $5 million to $10 million of restructuring expenses in the first quarter of 2016, substantially all of which will be severance costs.
GoPro is slated to release its full financial results for the fourth quarter and full year 2015 after the market closes on Feb. 3.