GoPro falls as much as 28% on job cuts, light guidance

Analyst: GoPro challenges will continue near term
GoPro CEO to staff: Deeply emotional decision
GoPro shares halted on news its shedding 7% of workforce

Struggling wearable camera maker GoPro on Wednesday trimmed its guidance and announced it would cut its workforce by about 7 percent.

GoPro expects fourth-quarter and full-year 2015 sales of $435 million and $1.6 billion, respectively. Analysts had projected fourth-quarter revenue of $512 million, according to a consensus estimate from Thomson Reuters.

"Fourth-quarter revenue reflects lower-than-anticipated sales of its capture devices due to slower-than-expected sell-through at retailers, particularly in the first half of the quarter," the company said in a statement.

GoPro shares plunged as much as 28 percent in after-hours trading after a halt. Shares of Ambarella, a key GoPro producer, also fell by about 10 percent in extended trading.

A GoPro Hero4 camera
Getty Images

In a memo to staff, CEO Nick Woodman said the job cuts were "necessary" after workforce growth in recent years. The company said its employee count grew by more than 50 percent annually in the past two years to more than 1,500 at the end of 2015.

"This was a difficult and deeply emotional decision. But it was a necessary one," Woodman said in the memo.

GoPro shares in the last six months

Source: FactSet

Additionally, GoPro said Zander Lurie resigned from his post as senior vice president of GoPro Entertainment and would join the company's board of directors. Lurie previously was an executive at CBS.

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The company's shares have tumbled 70 percent in the last year. At its after-hours lows Wednesday, the stock was down about 90 percent from its all-time intraday high of $98.47 per share, which was reached in October 2014.

GoPro is scheduled to report full quarterly results on Feb. 3.