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GoPro to cut more than 20% of its workforce as it exits drone business and lowers guidance

The camera maker said it was withdrawing from the drones business due to intense competition and fears over regulation

gopro karma drone
More than 250 people are expected to lose their jobs, which GoPro hopes will save it US$80mln

Action camera maker GoPro Inc (NASDAQ:GPRO) confirmed plans to cut at least 20% of its workforce as it lowered full-year guidance.

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. 

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Price: 3.74 USD

NASDAQ:GPRO
Market: NASDAQ
Market Cap: $576.41 m
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