GoPro, Inc. GPRO disclosed a plan to reduce its global workforce by about 4% to lower operating costs and drive stronger operating leverage.
The company expects the restructuring to result in estimated aggregate costs of about $7.5 million.
GoPro projects cash expenditures of about $2.0 million of the estimated aggregate costs from the job cut in the first quarter of 2024.
The remaining expenditures will mainly related to planned reductions of office space.
The company estimates impairment charges of around $3.3 million in the first quarter of 2024 due to a reduction in office space and anticipates roughly $2.2 million of office space charges through January 2027.
GoPro projects that a substantial portion of these restructuring charges will be reflected in its GAAP results for the first quarter of the fiscal year ended December 31, 2024.
Investors can gain exposure to the stock via Invesco NASDAQ Future Gen 200 ETF QQQS and Global X Millennial Consumer ETF MILN.
Price Action: GPRO shares closed lower by 2.64% at $2.21 on Tuesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
