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GoPro exits drones and cuts staff by a fifth

GoPro says it is to exit the drone market as part of a restructuring that will include cutting its workforce by more than a fifth to below 1,000 staff.

The action camera specialist said it was reacting to a slump in sales during its core US holiday season.

It said weak demand for its adventure cameras and drones would result in fourth quarter revenue coming in about 37% below the figure achieved in the same period the previous year.
Its forecasts of a weaker outlook also contributed to GoPro shares plunging by almost 30% in early US trading.
They were later 20% down as the session gathered momentum – leaving the stock at $6 (£4.42) per share.
The company went public at $24 per share in 2014.

California-based GoPro said its decision to leave the drone market was down to tough competition and tighter regulation of the sector.
Of greater concern for analysts was the marked slowdown in overall sales – now expected to be $130m (£95.9m) below initial estimates of $470m (£346m).

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Founder and chief executive Nicholas Woodman said: “Despite significant marketing support, we found consumers were reluctant to purchase HERO5 Black at the same price it launched at one year earlier.”
He said he would make a personal sacrifice by cutting his own pay in 2018 to just $1 (74p).

Source: Sky

About Business Ideas UK

My name is Joel Bissitt. I have been an entrepreneur for 24 years and have run many small businesses across various sectors. For the last 10 years I have worked mainly within online media, franchising and small business start-ups.

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