GoPro had a hard time selling cameras in the fourth quarter last year, and there are major layoffs planned at the camera maker and action sports media company. Wall Street did not take the news well. After a brief suspension in trading, the company’s stock is down more than 20 percent in after-hours trading.
A release from the company says it anticipated $435 million in Q4 revenue and $1.6 billion in revenue for the 2015 calendar year, coming in way below what was expected. As a result, the company plans to cut 7 percent of its workforce. Additionally, the company’s top media exec, Zander Lurie, is leaving his job and moving onto the GoPro board.
In email obtained by Re/code that CEO Nick Woodman sent to GoPro employees, Woodman places the blame for the layoffs on the “launch and pricing” of GoPro’s $399 Hero 4 Session camera last year:
Today’s announcement reflects the issues we faced in 2015, largely related to our launch and pricing of HERO4 Session. While we clearly made a mistake pricing Session at $399 (more specifically I made the mistake, it was my decision), I’m proud of how we responded. We recognized the problem, price adjusted to $299 … recognized that wasn’t enough and price adjusted again to $199 which positioned Session as the best entry-level product we’ve ever made.
GoPro’s stock has dropped precipitously over the last year as it has struggled to sell more cameras and develop its media business.
[graphiq id=”2cE97PCnTA9″ title=”GoPro Inc. (GPRO) Stock Price – Current Day” width=”600″ height=”578″ url=”https://w.graphiq.com/w/2cE97PCnTA9″ link=”http://listings.findthecompany.com/l/12123149/GoPro-Inc-in-San-Mateo-CA” link_text=”GoPro Inc. (GPRO) Stock Price – Current Day | FindTheCompany”]
This article originally appeared on Recode.net.