MarketWatch First Take: GoPro says sudden job cuts won’t hinder product cycle

GoPro Inc. seems to have found more fat in its organization, just a few months after a round of job cuts, with claims that more layoffs will not hurt its product development cycle.

Earlier on Wednesday, GoPro GPRO, +1.52%surprised investors with news that it was cutting 270 more jobs, forecasting revenue on the high end of its guidance, and profitability on an adjusted, or EBITDA, basis in 2017. The news led to an after-hours rally, with the action-camera company’s embattled stock jumping more than 9%, to $8, in late trading.

GoPro’s shares, though, are still off about 55% from a 52-week high, and last week Goldman Sachs downgraded the stock to a sell, citing a number of its challenges, including saturation in its core camera market, a new competitor and worries about its cash flow.

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