GoPro announced that it would lay off 200 employees (about 20% of the company) due to being affected by new Coronavirus. Besides, they will shift most of their business to the direct purchase model of consumers to save about 100 million U.S. dollars in expenses.
According to official expectations, GoPro’s revenue in the first quarter of this year may be less than half of the same period last year. While announcing this news, CEO Nicholas Woodman also decided not to receive his salary for the rest of the year.
And now they expect that their sales in Q1 maybe only 119 million U.S. dollars, which is much inferior to the previous quarter’s 528 million. However, despite this, GoPro said that its next product roadmap would not be affected.
As for the transition to direct consumer purchases, it is mainly due to the negative impact of the epidemic on GoPro’s global distribution network. GoPro wrote in the press release: “We have hit and we have to give up many excellent team members. We will always be grateful for their contributions.”
But at the same time, they also said that “we will still cooperate with certain important retailers in some key regions” to meet “the needs of customers who want to buy offline or through third parties.”
The organization will quit selling its gadgets in many retail stores. GoPro will, in any case, work with select retailers in certain areas as they, despite everything, produce a lot of sales.
However, selling straightforwardly on GoPro.com speaks to the eventual fate of the organization, which ought to improve margins. They don’t need to cut retailers when GoPro is going about as the retailer. In 2019, GoPro.com spoke to more than 20% of European income and somewhat under 20% of revenue in the U.S.