GoPro Exits The Drone Market, CEO Hopeful For The Future, Despite Layoffs

  • GoPro Exits The Drone Market, CEO Hopeful For The Future, Despite Layoffs

GoPro Exits The Drone Market, CEO Hopeful For The Future, Despite Layoffs

However, prices rebounded sharply following a report from CNBC that the company has hired JPMorgan to find a buyer.

Sport-camera maker GoPro confirmed Monday it will slash at least 20 percent of its workforce and drop its Karma drone business as it restructures operations.

With CNBC in the U.S., CNBC in Asia Pacific, CNBC in Europe, Middle East and Africa, and CNBC World, CNBC is the recognized world leader in business news and provides real-time financial market coverage and business information to more than 409 million homes worldwide, including more than 91 million households in the United States and Canada. The San Mateo, California-based company has also faced intensifying competition in the action-camera market, as big tech companies from Samsung Electronics Co.to Alphabet Inc.'s Google have started selling similar products. 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.

While the Karma drone struggled from the beginning to reach the skies, with a number of failed release dates and an embarrassing recall after users reported drones losing power and dropping out of the sky, GoPro partly blamed drone regulations for their decision.

The company has lowered the guidance for its next-quarter earnings, and founder and CEO Nick Woodman has reduced his salary to $1 for 2018, according to the statement, although other non-cash compensation remains.

GoPro is getting out of the drone business. Some of GoPro's biggest competitors include DJI and AeroVironment.

The company said it saw lower than expected revenue in the fourth quarter of 2017. GoPro also cut some 200 positions in November of 2016. Unfortunately, as it stands, it seems an understatement to say that GoPro's early quarterly results leave a lot to be desired. Its new device, the Hero6 Black, has seen a price cut of $100, and you can likely expect more aggressive promotions and new cameras coming soon.