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Dow Jones. GoPro Inc. GPRO U. I'm the one who put the cart before the horse. Still, GoPro continued barreling toward unveiling its entertainment initiative by the end of Woodman felt he had a roster of new products that would reignite the camera business. GoPro had acquired several small software outfits that would make it easier to edit videos and built a service that made it simpler to offload footage from a camera. It had a new flagship camera in the works that would be waterproof without a separate case, and it was building its Karma drone, which would launch the company into a hot new market that many were predicting would rule the holidays that year.
When the release date finally came that September, Woodman ran onto a stage at the Squaw Valley Ski Resort near Lake Tahoe, high-fiving a screaming crowd stocked with GoPro-sponsored athletes and influential lifestyle vloggers who get free GoPro cameras. The past two years had battered the formerly charmed brand, but now he'd show the world that the company still had that old GoPro magic. Except it didn't. A few weeks later, GoPro acknowledged "production issues" with its new Hero5 Black flagship it was leaking when underwater, Woodman says now and had to scramble to fix the flaw.
Ultimately there were fewer Hero5 Blacks on shelves for the crucial holiday season. Days later, a customer posted a YouTube video showing a new Karma drone plummeting to earth midflight. Only a few thousand drones had shipped, so they knew the situation was containable. But since nobody had a clue what was wrong with them, there was no quick fix. The only option was a total recall, which they issued within a few hours.
And as soon as you say that, you're just like It was like, 'Fuck. And then to have our reputation falling out of the sky, coupled with the Hero5 Black problem--it was absolutely crushing.
It made us look like we were completely incompetent. Teams of employees flew hundreds of the recalled drones above the company parking lot for weeks, and eventually learned that a simple plastic latch was coming loose, causing the battery connection to slip out of place.
That meant the problem was easily fixable. But the Hero5 Black issue, too, stemmed from a lapse in quality control. The camera wall was only 0. The real cause of both problems, he continues, was that "the teams were killing themselves to launch the products on time.
We were doing too many things, and it was taking too long to make decisions because management was juggling too many projects at once. Weeks after the Karma recall, GoPro announced layoffs. Then, in March , a month after the Karma was finally reintroduced, came a second round of layoffs.
All told, around people were fired--more than a quarter of the company. The entertainment division was shuttered, though a few dozen company stalwarts stayed on. Management took a big hit too: More than 40 percent of the people at VP level or higher departed, says Prober.
Before the IPO, GoPro had been a fairly simple operation, with sales, marketing, engineering, and design teams working on all of the company's products. After the IPO, as GoPro tried to build new businesses, the company moved to a more siloed structure, where multiple divisions--software, hardware, media--ran largely as separate business units.
This bred more bureaucracy and made communication and collaboration difficult--which, Prober contends, enabled some mistakes. With the layoffs, GoPro went back to its earlier, flatter structure.
If you're trying to be something you're not, everybody's going to know it, and nobody's going to think highly of you for it. And the truer that you can be to yourself, the better chance you have of fully realizing your potential.
Well, here's what we've got to do. Woodman started sharing his contrition with the entire company. Previously, GoPro had held quarterly all-hands pep rallies, called hangs, but now the company added more subdued monthly affairs, with Woodman standing in front of a few hundred employees the rest watched online giving a speech and then taking hard questions for as long as two hours.
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Institutional Shareholders. Key Takeaways GoPro is a maker of some of the most versatile cameras in the world. Article Sources. Investopedia requires writers to use primary sources to support their work.
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