GoPro saw its shares plummet by more than a quarter on Wednesday after it forecast revenues below market expectations.

The action camera firm said revenues would likely be $435 million (£302m) in the fourth quarter, compared with expectations of $512m, which sent shares down 28%.

GoPro also announced plans to cut its 1,500 workforce by 7%, which will cost around $10m.

The firm said disappointing sales of its cameras, which are hugely popular with outdoor adventure enthusiasts, over the Christmas period were largely to blame for the reduced forecast.

In a statement, GoPro said: "Fourth-quarter revenue includes a $21m reduction for price protection related charges resulting from the Hero4 Session repricing in December."

It cut the price of its Hero4 Session camera after it reported in October weaker-than-expected.

The cut in revenue forecast means that GoPro expects to generate around 30% less income than in the same quarter in 2014.