GoPro cuts 20 per cent of jobs, exits drone group

GoPro cuts 20 per cent of jobs, exits drone group

GoPro cuts 20 per cent of jobs, exits drone group

The company's shares, which earlier dropped as much as 33 percent, pared some losses after the report, declining 11 percent to $6.67 at 1:55 p.m.in NY.

GoPro is killing its drone business and slashing 20% of its staff after reporting weak demand for its products. GoPro also said that would kill its Karma drone business amid poor sales and a glitch that caused the device to shut down in mid-flight and led to a recall after it debuted in late 2016.

Woodman confirmed GoPro would remain independent in the case of a sale or partnership.

GoPro said it expects $340 million in Q4 revenue - a slight $10 million bump from its previous quarter.

GoPro CEO Nick Woodman introduces the new foldable Karma drone during a press event in Olympic Valley, California on September 19, 2016.

The action camera company has hired J.P. Morgan Chase to help it find a suitor, according to a CNBC report on Monday that cites unnamed sources.

"GoPro is committed to turning our business around in 2018", Woodman said in the statement. Then on Sunday it also cut the price of its premium HERO6 camera. "We entered the new year with strong sell-through and are excited with our hardware and software roadmap".

In its statement today, GoPro also cited the hard regulatory regimes in the U.S. and Europe as the reason why it doesn't think the drone market will be lucrative in the long term.

The firm made the announcement on Monday as it warned investors of disappointing end-of-year results and layoffs. What's more, as part of a "sharper focus" that will enable the company to save $80 million in operating expenses this year, CEO Nick Woodman will see his 2018 cash compensation reduced down to just $1. And as previously stated in this text, the company will exit the arial market as GoPro has deemed it untenable. But GoPro saw its sales slump in 2016 as companies began flooding the market with cheaper, sometimes, comparable alternatives to the GoPro.

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