• News
  • Tech

GoPro Exits The Drone Market, CEO Hopeful For The Future, Despite Layoffs

GoPro Exits The Drone Market, CEO Hopeful For The Future, Despite Layoffs

GoPro Inc would be willing to partner with a larger sector player but is not actively engaged in a sale, the action camera-maker said yesterday, as its shares partly rebounded from earlier heavy losses.

GoPro CEO Nick Woodman announced the company will no longer make drones, drawing a line under its Karma, which failed to recover from a recall a year ago after units were reported to fall from the sky.

The company announces that they will no longer be producing drones, the report comes from their most recent earnings report.

GoPro is shutting down its drone business and laying off 20% of its staff due to weak demand for its products. These factors make the aerial market untenable and GoPro will exit the market after selling its remaining Karma inventory.

GoPro did not immediately reply to CNET's request for comment. Mostly, however, they cited the fierce competition in drone manufacturing as the reason the Karma has failed.

Furthermore, it forecasts that tough regulatory hurdles in Europe and the United States will likely reduce the market for drones in the years ahead.

Morgan Stanley said in a research note yesterday that the price cut would make earnings growth hard in fiscal 2018.

The company said it now expects sales of about $340 million, well short of its own previous projection of as much as $480 million and the average analyst estimate of $472 million. The job cuts and business restructuring will result in an estimated charge of $23 to $33 million, most of which will be recognized in the first quarter, the company said.

As the company said it would be making around 250 employees redundant, Woodman announced he would take just $1 in pay for 2018, compared to around $800,000 (£590,000) plus bonuses in 2016.

"Cutting costs is a good move, although now it's about if the company can turn this ship around themselves", Daniel Ives, analyst at GBH Insights, said.

Meanwhile, Chief Executive Nick Woodman has cut his cash compensation to $1 for 2018.

Leave Your Comment

Leave Your Comment


Latest News

Breaking News



Recommended

Red Cross issues urgent call for blood, platelet donors

Winter hits the organization hard and their supplies of both blood and platelets are running low. You should also eat a good meal and drink lots of water beforehand.

Leeds suffer shock FA Cup exit at Newport

Unfortunately for the policeman, Leeds were eliminated during an entertaining third round tie against the Welsh League Two side.

Zarif to be invited to European Union for talks over Iran protests

If the president fails to sign the waivers, which are to be extended every 120 days, the restrictions on Tehran will be automatically re-imposed.

Nicole Kidman Praises Husband During Golden Globes Speech

I love you so much". "I do believe, and hope, we can elicit change through the stories we tell and the way we tell them". Reese Witherspoon was so "overwhelmed " Big Little Lies' Golden Globes victories that she "cried 16 times".

Our Cartoon President Trailer Spoofs Trump's TV Addiction, Fox & Friends, & More

But he's also going to take shots at those in his administration, including White House press secretary Sarah Huckabee Sanders. Is Colbert anxious that the country is suffering from Trump fatigue? "That would be like oxygen fatigue".

Iranian tanker burns, spills oil after collision off China's coast

The Iranian tanker, Sanchi , is ablaze and leaking oil after colliding with the Hong Kong-registered vessel CF Crystal . The tanker's 32 crew members including 30 Iranians and two Bangladeshi sailors were missing in the incident.

FIR filed against journalist for report about breach of Aadhar data

Charges were been registered under Section 66 of the Information Technology Act and Section 36/37 of the Aadhaar Act. Justifying its stance, UIDAI said criminal proceedings have been initiated as it was an act of unauthorised access.

Maxim Group Raises Express Scripts (ESRX) Price Target to $87.00

Finally, Victory Capital Management Inc. raised its stake in shares of Express Scripts by 12.5% during the 3rd quarter. Raymond James Financial reissued a sell rating on shares of Express Scripts in a report on Friday, December 15th.

Unhappy Farmers Dump Potatoes Outside CM Adityanath's Residence, Police To Take Action

During the crop season 2016-17 the total area sown was 6.14 Lakh hectares and the estimated production was 1.56 crore MT. Farmers alleged that cold storage owners take high prices from them which they are not able to pay, according to sources.

Falcons Grab Early Lead After Costly Rams Mistake

It's going to sting for a while for the Rams and for their fans, both in St. PFF previews the top player matchups of this win-or-go-home game.