Cuts 20% of employees and cancels retail channels, GoPro suffers severe blow
GoPro is being hit hard by the commercial headwinds caused by the coronavirus epidemic. The company recently announced that it will lay off 20% of its employees. In addition, GoPro is planning to withdraw retail channels and try to sell its products directly to consumers through channels such as the Internet.
GoPro founder and CEO Nicholas Woodman said: “GoPro’s global distribution network has been affected by all aspects of COVID-19, prompting us to work hard this year to transition to a more efficient and profitable direct-to-consumer business. Of course, because of the epidemic, we were indeed crushed. , Which forces us to give up many talented members of the team, and we are forever grateful for their contributions.”
GoPro will fire more than 200 of its 926 employees. It is expected that this move will help the company achieve The 2020 operating profit reaches the goal of 100 million US dollars. For this reason, the company’s president and senior management team also voluntarily gave up their salary in recent months. GoPro said that in recent years, it has begun to develop towards a direct-to-consumer model. In the top markets of the United States and Europe, about 20% of its business comes from the GoPro website, with more than 7 million visitor traffic per month.
According to GoPro’s report, it sold 700,000 sports cameras of various models in the first quarter of 2020, with revenue of US$119 million, but it was still 15% lower than the expected share.
Editor’s point of view:
During the epidemic, brands at all levels and scales of the photography industry chain have been greatly affected. Although objective factors have led to the decline of many purchases, it can also be regarded as a wake-up call for the operation and development of the photography industry. How to transform, how to change the marketing model, and even how to treat the equipment itself, perhaps this epidemic can give a lot of thinking results that have to be made.
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