Proactive Investors - Run By Investors For Investors

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. 

View full GPRO profile View Profile

GoPro Inc Timeline

Related Articles

MRI scan
February 22 2019
In February, the firm appointed Dr Tom Oakley, a qualified radiologist and former director of NHS services at telemedicine firm Synergix Health, as the new chief executive of its trading company Feedback Medical
Light fittings
August 23 2018
The group's traditional LED business is operating in a fiercely competitive environment. The group is pinning its hopes on becoming a software and services business
March 19 2019
ITM Power’s first-half results in January showed the hydrogen energy solutions provider has significantly strengthened its capability to deliver larger industrial scale projects
Copyright ©, 2019. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use