GoPro announced today that the company will cut approximately 270 more jobs, or about 17 percent of its workforce based on its headcount at the end of last year. That’s on top of the 200 positions the company said it would eliminate in November.
The job cuts will cost the company up to $10 million but will save as much as $200 million in operating expenses for the year, GoPro said in a statement. The company also expects first-quarter sales to be about $210 million, the upper end of the original estimate. The stock surged almost 9 percent in after-market trading on the announced changes.
GoPro primarily sells action-oriented cameras, but it recently made a foray into drones. The company’s foldable Karma drone is back for sale after an embarrassing recall. Some customers complained of a power failure that caused the aircraft to fall from the sky, leading to the recall.
Last November, GoPro also announced it was shuttering its entertainment division in 2016 and that Tony Bates, who was the president of GoPro since June 2014, would step down.
Even now that GoPro’s hyped Karma drone is back on the market, it’s unclear that drone sales will be enough to revive the floundering company.
Still, CEO Nick Woodman is hopeful.
“There will be new hardware and software products from GoPro in 2017,” said Woodman in an investor call today.
This article originally appeared on Recode.net.