The California-based group said it was exiting the drone business amid intense competition and a “hostile” regulatory environment, effectively ending sales from its Karma drone cameras.
As a result, GoPro expects its fourth quarter revenues to come in at US$340mln – well below its previous forecast of US$470mln.
Founder and chief executive Nick Woodman will take a personal hit from the weak guidance, with the company claiming he will reduce his cash compensation to US$1 for 2018.
"GoPro is committed to turning our business around in 2018," Woodman said in a statement.
“We entered the New Year with strong sell-through and are excited with our hardware and software roadmap.
“We expect that going forward, our roadmap coupled with a lower operating expense model will enable GoPro to return to profitability and growth in the second half of 2018.”
To try and boost sales of its latest adventure camera, the Hero6 Black, GoPro has also lowered the price by US$100 to US$399.
Shares were halted on Monday morning.