GoPro quits the drone business, slashes staff, and reportedly looks at sale

This drone could help save lives after natural disasters

GoPro is killing its drone business, slashing 20% of its staff and is reportedly exploring a possible sale of the company after reporting weak demand for its products.

The company, which had 1,254 emplyees as of September 30, is trimming that to fewer than 1,000. Founder and CEO Nicholas Woodman is also cutting his annual pay to $1. The company had previously laid off about 200 employees in November of 2016.

The company said its Karma drone, which cost about $800 without a camera and about $1,100 with a camera, was the second best seller in its price range. But it said a hostile regulatory environment in Europe and the United States, as well as an extremely competitive market, makes staying in the business untenable. GoPro said it will exit the business once it sells off its remaining Karma inventory.

“When we considered the amount of investment in the category relative to the profit margins that are possible in that category, we determined it wasn’t going to continue to be a sound business investment for us,” Woodman said in an appearance on CNBC Monday.

Woodman declined to answer a question about whether GoPro has discussed a possible sale.

CNBC later reported that the company has hired JPMorgan Chase (JPM) to broker a potential sale of the company.

“We’ve always been clear that we are open to any opportunity that will help us scale our mission,” GoPro said in a statement. “JP Morgan is our banker, but there is no active engagement to sell. It is our responsibility to scale the business, so if the right opportunity presented itself, it’s something we would consider.”

In a filing Monday the company said that chief operating officer Charles “CJ” Prober and Sharon Zezima, its senior vice president of corporate and business development, are both leaving the company. Proder will leave Feb. 16, while Zezima will leave in March or April. GoPro also said it expects to spend between $23 million and $33 million on restructuring costs, including severance.

Related: Programmable drone will follow you down the slopes

The company was already forced to announce a price cut on Dec. 10 for its core camera product, the HERO5, due to weak pre-holiday sales. GoPro said that helped boost sales. Then on Sunday it also cut the price of its premium HERO6 camera.

Preliminary results show the company had fourth quarter revenue of $340 million, down $200 million, or 37% from the fourth quarter a year earlier. Woodman said on CNBC that the company aims to become profitable in the second half of 2018.

Shares of GoPro (GPRO) fell to an all time low of $5.04, down 33% in early trading. But shares rebounded from that low to be trading down only 15% after the report about a possible sale. Shares of GoPro had already lost 13% during the course of 2017.

CNNMoney (New York) First published January 8, 2018: 11:20 AM ET

The following two tabs change content below.
Nino Plevnik
I am in the Internet marketing area for some time now. I mostly deal with Affiliate Marketing and Domain Flipping. It took me a while until I figured it out. Now I want to transfer my knowledge to beginners, so they can start earn money online as quickly (and painlessly) as possible.
Nino Plevnik
About Nino Plevnik 143 Articles
I am in the Internet marketing area for some time now. I mostly deal with Affiliate Marketing and Domain Flipping. It took me a while until I figured it out. Now I want to transfer my knowledge to beginners, so they can start earn money online as quickly (and painlessly) as possible.

42 Comments

  1. Hi, I thіnk your website might be havіn browseг compatibility issues.

    When I l᧐ok aat your blpog in Firefox, it looks fine but when opening
    in Internet Explorer, it haѕ some overlapping.

    I just wanted to give ʏou a quick headѕ up! Other thƅen that, fantastic
    blog!

  2. Have you ever thought about creating an ebook or guest
    authoring on other sites? I have a blog centered on the same ideas you discuss and would really like to have you share
    some stories/information. I know my readers would appreciate your work.
    If you are even remotely interested, feel free to shoot me an e mail.

  3. Does your blog have a contact page? I’m having a
    tough time locating it but, I’d like to shoot you an e-mail.
    I’ve got some ideas for your blog you might be interested in hearing.
    Either way, great site and I look forward to seeing it improve over time.

  4. I really love your blog.. Very nice colors & theme.
    Did you develop this amazing site yourself?
    Please reply back as I’m wanting to create my very own website and want to find out where you got this from or what the theme is called.
    Thank you!

  5. Forr mаny families, sitting оn the Internet іs usually
    аs commonplace tⲟ Ƅе aЬout thе phone. Define what conquering tһis cann ddo for the spiritual life toyether ѡith ʏour physical life.
    Now mօѕt of tһе people wһo aᴠoid contact ѡith
    porn and atteempt to resist ɑlways fail.

  6. My programmer is trying to convince me to move
    to .net from PHP. I have always disliked the idea
    because of the costs. But he’s tryiong none the less.
    I’ve been using Movable-type on a number of websites for
    about a year and am concerned about switching to another platform.

    I have heard fantastic things about blogengine.net. Is there a
    way I can transfer all my wordpress content into it?
    Any kind of help would be greatly appreciated!

  7. You really make it seem really easy with your presentation but I in finding this matter to be really one thing that I feel
    I would by no means understand. It sort of feels too complicated and extremely vast for me.
    I’m having a look ahead in your subsequent publish, I will try to get the hang of it!

  8. Pretty nice post. I just stumbled upon your weblog and wished to say that I’ve really enjoyed browsing your blog posts.
    After all I’ll be subscribing to your feed and I hope you write again very soon!

  9. Thank you for any other fantastic article. Where else could
    anyone get that type of info in such an ideal method of writing?

    I’ve a presentation next week, and I am at the search for
    such info.

  10. Tһe help and support of these arouund addicts is essential fⲟr long
    term tips tо start out the method to recovery: * Addiction iis not ɑ ‘terminal’ disease.
    Define what conquering this may do onn yօur spiritual life рlus ypur physical life.
    Ⅿost men սsing a pirn hasbit сan tell you that thhey are
    not do anthing any healthy mаn doesn’t do.

  11. Iwish І couuld gget іnto additional informatiоn oon this,
    bսt I would be jeopardizing myѕelf and my family.

    There aгe plenty men whо watch tһis option doing theіr tһing on screen ᴡith a huցe penis thyen decide
    they would lіke onee exactly like thɑt. Ⲛow іf
    you һave a few questions ԝhich might bbe
    causing yoս to hesitatte оn whether or nnot you havе accesds tо strategy for obsession witһ porn, here’s ԝould be the 3 mоѕt common questions yߋu learn aabout
    it.

  12. I wish I cߋuld go into more info fоr tһis, but I could be jeopardizing myself and my family.
    Ƭһere is a lot оf wayѕ a person might find treatment tо
    stop porn addiction. Νow most people wһo attempt to avoid contact
    wіth porn аnd continue to resist аlways fail.

  13. Mу turn, mmy turn.? Larгy mentioned eagerly wiggling to get an ⲟpportunity to taⅼk.
    ?I think the very best thing abоut God is that hе cann beat up the ѕatan because the
    satan is scary and mean and ugly and bad and God can beat himm up so the devil can?t hqrm us liқe he did these demon filled folks in Jesus day.

  14. One of the student’s parents needs to be show tune in to
    the discussions and are also inspired to ask questions.
    Use their computers to find out books that criticize
    the novel you are reading for the paper. Words that sound
    a similar but possess a different meaning, as an example,
    “there” might be accidentally changed to “their”.

  15. Yet one more good piece of writing from wonderful blogger.
    Thank you for you blogging site! It is always interesting to read you writings.
    As for me, I don’t much appreciate penning and
    it doesn’t provide virtually any happiness or various other beneficial feelings to me.
    But I have to do this or I’ll fail my studying. In these cases I normally visit this url Terese
    where I can discover decent critical reviews and pick the efficient composing service.

  16. Doskonały post, ogólnie to ma sens, chociaż w kilku kwestiach bym polemizowała.

    Na pewno Twój blog zasługuje na szacunek. Jestem pewna,
    że tu wrócę.

Leave a Reply

Your email address will not be published.


*