GoPro drops drones as sales plunge

Latest news

    GoPro boss Nick Woodman in 2014 when the firm's shares started trading on the Nasdaq exchangeImage copyright Getty Images
    Image caption GoPro chief Nick Woodman when the firm listed in 2014

    Camera-maker GoPro said it is getting out of the drone business following “hostile” regulations in the US and Europe.

    The firm made the announcement on Monday as it warned investors of disappointing end-of-year results and layoffs.

    GoPro said revenue fell almost 40% in the fourth quarter to $340m compared with the same period in 2016.

    The firm said it is committed to “turning around” the business.

    On Monday, GoPro said sales struggled during the critical holiday shopping season.

    The firm was forced to slash prices of key products, including the HERO5 Black camera, to increase demand in a move that cost about $80m.

    Shares plunged almost a quarter following the announcement.

    GoPro said it will stop making aerial cameras, citing an “extremely competitive” market and hostile regulatory climate.

    The company is cutting more than 250 staff from its workforce, which numbered more than 1,250 at the end of September.

    Image copyright Getty Images
    Image caption GoPro plans to stop selling drones

    The salary of chief executive Nicholas Woodman has also been cut to just $1 in an effort to reduce expenses.

    He hoped the actions would return the firm to profitability in the second half of 2018.

    GoPro will release a more detailed financial details in February.

    Founded in 2004, the California-based firm is known for its small, portable video cameras.

    Its shares surged after listing in New York in 2014 but have fallen more recently following increased competition from smartphones.

    View the original article: http://www.bbc.co.uk/news/business-42612026

    There have also been issues with some products, including the recall of its Karma aerial camera in 2016, after unexpected crashes.

    In the same category are

    Leeds plastic bottles car parking scheme is ‘well received’ Hundreds of plastic bottles have been handed in to a Leeds car park which is allowing them to be used toward the cost of parking. The initiative allow...
    Jamal Khashoggi: Pompeo meets Erdogan over missing writer Image copyright AFP Image caption Saudi Arabia faces new claims the writer was killed inside the Saudi consulate in IstanbulUS Secretary of State Mike...
    Chinese woman kills herself and children after husband fakes death Image copyright Weibo Image caption The man's alleged plan to claim an insurance payout went tragically wrongA Chinese man who allegedly faked his own...
    Chinese woman kills herself and children after husband fakes death Image copyright Weibo Image caption The man's alleged plan to claim an insurance payout went tragically wrongA Chinese man who allegedly faked his own...
    UK inflation falls to 2.4% in September Image copyright Getty ImagesThe UK inflation rate fell more than expected in September, dropping to 2.4% after hitting a six-month high in August. The...
    NFL: How ‘perfect’ Tom Brady & ‘the future’ Patrick Mahomes shone in week 6 The NFL This Week team look at how Tom Brady and the New England Patriots played the perfect game to take down the Kansas City Chiefs and rising star ...

    Leave a comment

    Your email address will not be published. Required fields are marked *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.