KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
GoPro, the action camera maker, announced on Monday that it plans to reduce its workforce by approximately 15% this year as part of a restructuring initiative aimed at cutting operating expenses.
Key Highlights:
Workforce Reduction: The layoffs, which will affect around 139 employees, are expected to begin in the third quarter of 2024 and be completed by the end of the year. GoPro had 925 full-time employees as of the end of the second quarter.
Financial Impact: The company anticipates restructuring charges ranging from US$5 million to US$7 million, with cash expenses of about US$1 million to be recognized in the third quarter and US$4 million to US$6 million in the fourth quarter of 2024.
Market Reaction: Following the announcement, GoPro's shares rose by 1.5%.
Recent Financial Performance: Earlier this month, GoPro reported a 22.7% decline in revenue for the second quarter, totaling US$186 million. The company's operating expenses increased by 5% from the previous year, reaching US$103 million.
Patent Infringement Probe: In May, the U.S. International Trade Commission launched an investigation into GoPro's claims that its patents for cameras, systems, and accessories were being violated by Chinese firm Arashi Vision, which was importing similar products into the U.S.
Outlook: The workforce reduction is part of GoPro's broader strategy to streamline operations and reduce costs in response to declining revenues and increased expenses. The company is likely aiming to position itself more competitively in a challenging market environment. The ongoing patent dispute with Arashi Vision may also have implications for GoPro's market share and financial performance moving forward.
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