GoPro Inc said it was cutting 7 percent of its workforce and estimated revenue for the holiday quarter below estimates as it sold fewer action cameras than expected, sending its shares plunging 28 percent in extended trading.

GoPro said it expects revenue to be about $435 million for the fourth quarter, well below analysts’ average estimate of $511.9 million, according to Thomson Reuters I/B/E/S.

The company, which had about 1,500 employees at the end of 2015, said quarterly revenue was hit as it cut the prices of its HERO4 Session cameras to cope with waning demand.

GoPro Chief Executive Nicholas Woodman had said weaker-than-expected demand for its Hero4 Session camera was due to its initial high price and fewer marketing campaigns.

Traders said on Wednesday that the revenue miss was expected but not of this magnitude. This does not bode well for its 2016 forecast, they added.

Ambarella Inc, which provides chips used in GoPro’s cameras, fell 8.5 percent in after-market trading.

GoPro will report results for the fourth quarter and full year 2015 on Feb 3.

(Reporting by Anya George Tharakan in Bengaluru; Editing by Don Sebastian)

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