What is the impact of GoPro's dismissal of 7% of its employees?

GoPro announced the fourth quarter of 2015 (October - December) and the 2015 financial results report. The report states that 7% of personnel reductions have been made, and after the announcement of financial results, the stock price of GoPro has fluctuated greatly.

GoPro Announces Q4 and Calendar Year 2015 Preliminary Results (NASDAQ: GPRO)
http://investor.gopro.com/releasedetail.cfm?ReleaseID=950216


GoPro cutting 7% of jobs - Business Insider
http://www.businessinsider.com/gopro-cutting-7-of-jobs-2016-1

According to GoPro's 2015 financial results report, GoPro's expected revenue in the fourth quarter is $ 435 million (about 50.9 billion yen), with the expected return for the year of 2015 of $ 1.6 billion (about 187.2 billion Yen), but I found that the actual earnings were lower than expected. GoPro says, "Sales of wearable cameras, the flagship product, are lower than usual expectations, especially sales in the first half were sluggish."

In addition, GoPro is reducing workforce by 7% in 2015 and said he paid 5 million dollars (about 585 million yen) retirement allowance. Following the release of the financial results report, GoPro's stock price fell by 24% and recorded the company's lowest share price. Along with this, the stock price of Ambarella, a chip manufacturer of GoPro, also declined 9%.


As for the reason why GoPro's earnings were sluggish, Business Insider predicts the main factor is the low sales volume of the GoPro HERO 4 series, the latest model of the GoPro HERO series. In 2015, "HERO 4 Session" declined more than 10,000 yen, but the cost of price protection related to price revision was $ 21 million (about 2.4 billion yen) occurred. The details of expenses are not written in the report, but it seems to be the cost of price guarantee to the retail store. Morgan Stanley analysts have called the price cut execution "failed".