GoPro : Costs Associated with Exit/Disposal - Form 8-K
March 26, 2024 at 05:17 pm EDT
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Item 2.05. Costs Associated with Exit or Disposal Activities.
On March 26, 2024, GoPro, Inc. (the "Company") announced that it intends to reduce its global workforce by approximately 4% in order to reduce operating costs and drive stronger operating leverage. The restructuring of the Company's business will result in estimated aggregate costs of approximately $7.5 million. Cash expenditures will be approximately $2.0 million of the estimated aggregate costs in the first quarter of 2024 as a result of a reduction in force. The remaining expenditures primarily pertain to planned reductions of office space. The Company estimates impairment charges of approximately $3.3 million in the first quarter of 2024 related to the reduction in office space. The Company anticipates approximately $2.2 million of the office space charges through January 2027. The Company anticipates 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.
Note on Forward-looking Statements
This Current Report on Form 8-K may contain projections or other forward-looking statements within the meaning Section 27A of the Private Securities Litigation Reform Act. Forward-looking statements in this Current Report on Form 8-K include, but are not limited to, statements related to expectations regarding aggregate charges for employee termination and the timing to recognize these charges and other costs associated with the restructuring, including the estimates of related cash expenditures by the Company in connection therewith, statements regarding the number of employees subject to the reduction in force and the timing thereof and the impact of the restructuring steps, and statements regarding the issuance of updates on the Company's business and guidance and the timing thereof. These forward-looking statements are based on the Company's current expectations and inherently involve significant risks and uncertainties. The Company's actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks related to cost reduction efforts. A further description of the risks and uncertainties relating to the business of the Company is contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission (the "SEC") on February 9, 2024, and the Company's subsequent current reports filed with the SEC. The Company undertakes no duty or obligation to update any forward-looking statements contained herein as a result of new information, future events or changes in its expectations.
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GoPro, Inc. produces cameras, and mountable and wearable accessories. The Company offers a family of flagship cameras, including its cloud connected HERO12 Black, HERO11 Black, HERO11 Black Mini, HERO10 Black, HERO10 Black Bones, HERO9 Black, and MAX cameras. HERO12 Black is a waterproof camera, featuring a GP2 processor and HyperSmooth 6.0 image stabilization. MAX is a 360-degree waterproof camera featuring MAX HyperSmooth image stabilization, 360-degree MAX TimeWarp Video, MAX SuperView, PowerPano, audio, live streaming, voice control and a front facing touch display. Its subscription service offers full access to the video and photo editing features in the new Quik desktop app and Quik mobile app. It offers mobile, desktop and Web applications that provide a media workflow for archiving, editing, multi-clip story creation, and sharing content on the fly. It also offers a lifestyle gear lineup that melds its signature design and versatility across a line of bags, backpacks and cases.