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Struggling GoPro Plans More Job Cuts

GoPro reaffirmed its first quarter guidance while announcing more layoffs.

Mike Woodman, founder and CEO of GoPro, speaks during a YouTube keynote address at the 2016 CES trade show in Las Vegas

GoPro on Wednesday estimated its first-quarter revenue at the top end of its previous forecast, and said it would cut about 270 jobs to reduce expenses in a bid to return to profitability in 2017.

Shares of the company, which had 1,552 employees as of Dec. 31, were up (GPRO) about 7% at $7.89 in extended trading.

GoPro had previously forecast its revenue to be $190 million to $210 million in the quarter ended March 31.

“We currently have no need to draw on our credit facility and we expect to be EBITDA positive for full-year 2017,” chief financial officer Brian McGee said in a statement.

The wearable action-camera maker has been struggling with slowing sales of its helmet- and body-mounted cameras as cheaper rivals emerge and smartphones feature increasingly advanced cameras.

GoPro has also been plagued by missteps: a delay in the launch of the Karma drone, production issues for the Karma and Hero5 camera once they launched in mid-September, and then a recall.

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The job cuts come about three months after the company said it would cut about 15% of its workforce and shutter its entertainment business.

GoPro said it would incur charges of up to $10 million in the first quarter related to the restructuring.