GoPro Is Officially Out of the Drone Business (and It’s Cutting Hundreds of Jobs)
Nicolas Woodman, founder and CEO, will only receive a $1 salary in 2018.
PHOTO CREDIT: Getty Images
- GoPro on Monday announced a big restructuring plan that's part of its effort to become profitable this year.
- The action-camera maker said it will lay off more than 250 workers worldwide, exit the drone business, and reduce CEO Nicholas Woodman's 2018 cash pay to $1.
- The company also lowered its fourth-quarter revenue forecast.
In its preliminary fourth-quarter results released on Monday, the maker of action cameras said it is reducing its global workforce from 1,254 employees to fewer than 1,000.
Demand for the Hero5 model was soft during the holiday season, GoPro CEO Nicholas Woodman said in a statement. "Despite significant marketing support, we found consumers were reluctant to purchase HERO5 Black at the same price it launched at one year earlier," Woodman added. "Our December 10 holiday price reduction provided a sharp increase in sell-through."
GoPro is exiting the drone business amid strong competition and "a hostile regulatory environment in Europe and the United States." GoProrecalled about 2,500 units of its Karma drones in November 2016, shortly after launch, when some of them lost power during operation.
The company halted trading of its stock pre-market ahead of the news. It fell 17% in the year through Friday's market close.
This post originally appeared on Business Insider.