GoPro Cuts 20% of Staff, Shifts from Wholesale to DTC

GoPro announced Wednesday that it is cutting 20% of its workforce, or about 200 jobs, and shifting its focus away from wholesale to DTC.

“GoPro’s global distribution network has been negatively impacted by the COVID-19 pandemic, driving us to transition into a more efficient and profitable direct-to-consumer-centric business over the course of this year,” Nicholas Woodman, GoPro’s founder and CEO said in a statement. “We are crushed that this forces us to let go of many talented members of our team, and we are forever grateful for their contributions.”

In 2019, direct online sales generated more than 20% of revenue in top European markets and nearly 20% in the United States, the company said.

GoPro will continue to sell to select leading retailers in key regions where consumers prefer to purchase offline or indirectly. However, the company will be shifting primarily to consumer-direct sales to drive growth in regions where GoPro.com already enjoys a strong share of the market, the company said.

The company is cutting $100 million in expenses in 2020 and plans further reductions in 2021. It also plans to downsize office space in five geographies, cut sales and marketing expenses, and slash other costs across the business.

CREDIT: Tiffany Montgomery