GoPro cutting about 100 jobs after weak 4Q sales

GoPro isn’t doing so hot these days. GoPro shares plunged more than 20% in late trading Wednesday after being halted, falling lower than $11 after closing at $14.61, a penny higher than its all-time closing low.

The shares of GoPro Inc (NASDAQ:GPRO) plummeted during the extended trading after the action camera maker announced its jobs cuts and preliminary financial results for the fourth quarter and fiscal 2015.

According to the management, GoPro’s headcount increased more than 50% annually to more than 1,500 employees over the past two years.

GoPro has had a tumultuous run: The company’s stock surged after a blockbuster IPO in 2014 but has been freefalling in recent months.

The company explained that its revenue forecast for the quarter reflects its lower than anticipated sales of its cameras due to slower than expected sell through at retailers. The company released a video about the Karma on its YouTube channel last month. For comparison, it generated $633.9 million in revenue during the same period previous year. The brokerage also said the device could end up cannibalizing demand for GoPro’s more expensive wearable cameras.

GoPro pinpoints that disappointment on the October launch of the $500 Hero 4 model. GoPro is now having to lay off its staff as it works to develop new products and categories. To better align resources to key growth initiatives, GoPro has implemented a reduction in its workforce of approximately 7 percent.

The company will take a restructuring charge of between $5 million and $10 million, much of which will be severance costs, it said. We can assume that means virtual reality and quadcopters, because GoPro is expected to release products in those areas in 2016.

GoPro has been the king of action cams for the past few years, but it seems like its reign could be faltering.