San Mateo, CA – The California Bay Area-based, Go-Pro, announced that they are planning to reduce their workforce and product production.
Well-know for their on the go cameras that can be used for recording while being involved in heavy interactive activities. The company will be cutting their workforce by 20% and discontinuing the production of drones by exiting the business and focusing more on their cameras. In a press release, the company explained a decline in sales as a reason behind their decision.
After making this announcement GoPro’s shares fell 25% to $5.67. GoPro will be focusing on the following in 2018:
- GoPro is reducing its global workforce from 1,254 employees as of September 30, 2017 to fewer than 1,000 employees worldwide.
- GoPro founder and CEO Nicholas Woodman will reduce his 2018 cash compensation to $1.
- Although Karma reached the #2 market position in its price band in 2017, the product faces margin challenges in an extremely competitive aerial market. Furthermore, a hostile regulatory environment in Europe and the United States will likely reduce the total addressable market in the years ahead. These factors make the aerial market untenable and GoPro will exit the market after selling its remaining Karma inventory. GoPro will continue to provide service and support to Karma customers.