GoPro President Tony Bates to Remain on Board of DirectorsBy
GoPro Inc. President Tony Bates, who is stepping down from his executive position at the end of the year, has agreed to remain on the board of directors, the company said in a regulatory filing.
Last month, the maker of small action cameras said it would shutter its entertainment division and cut more than 200 full-time positions. GoPro said Bates, who had been recruited from Skype in 2014 to help build the company’s media operations, would leave his position Dec. 31 as part of the restructuring.
“We are deeply pleased that Tony Bates will remain as a GoPro board member and look forward to his ongoing leadership, business insights and friendship,” the company said Tuesday in an e-mailed statement.
GoPro has a dual class structure that concentrates voting control with Chief Executive Officer Nick Woodman, the company’s founder who also serves as board chairman. Some of the largest technology companies, including Facebook Inc. and Alphabet Inc., also have multiple share classes. Woodman owns 35.8 million Class B shares, or 76.9 percent of voting power, as of March 2016, according to data compiled by Bloomberg.
The board also approved an increase in restructuring costs of about $7 million to the company’s previous estimate of $24 million to $33 million, according to Tuesday’s filing. GoPro said last month that the job cuts and changes would reduce operating expenses to about $650 million in 2017 and achieve its goal of returning to profitability next year.
The restructuring marks a difficult year for GoPro. Neither its Karma drone nor the most recent camera, the Hero5, have become the hits that management expected. Sales growth has slowed and last month the company lowered its revenue forecast for 2016. A week later, GoPro announced it would recall about 2,500 drones after a small number of devices lost power.
To continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.