Mar 17, 2017 12:58 PM EDT

GoPro To Reduce Workforce as CEO Talks About Failure To Jump Into The Smartphone Movement

Camera maker GoPro has decided to let go of some of its employees in order to reach its revenue target, according to a USA Today report. The job cut is expected to help the camera maker lower its operating expenses, so it could strengthen its financial performance.

Investors holding GoPro shares appear to be happy with the announcement. Shares of the camera maker soared March 16 following the announcement.

However, the news will not be welcomed by GoPro employees who will be affected by the workforce reduction. When the need to lower operating expenses arise, companies usually tend to announce staff layoffs or cut the compensation of its executives.

GoPro has been successful in launching its action-friendly, high-definition cameras. However, after those products, the camera maker has not yet released a new one that would be a sure hit in the market.

In an interview with CNBC, GoPro CEO Nick Woodman discussed how the camera maker failed to join the smartphone movement. The camera maker is now working on how to incorporate smartphone to its products in order to take advantage of consumers' dependence on their smartphones.

Makers of smartphones are increasing their focus on having better cameras on their phones. While smartphones may be considered to be one of the rivals of GoPro products, joining the smartphone movement may actually help the company boost its profits.

One of the things that GoPro wants to implement is an easier transfer of footage from its products into smartphones. Woodman said GoPro continues to experience good sales, adding that it reflects the camera makers' continuous bid for improving its business.

GoPro has optimistic views on its business for 2017. The camera maker is expecting to record positive earnings before interest taxes, depreciation and amortization.

Jobs & Hire previously reported in December 2016 that GoPro is going to cut jobs because of stiff competition.

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