Latest
Recommended
Published: Tue, January 09, 2018
Economy | By Melissa Porter

GoPro cuts staff, considers selling company after weak holiday sales

GoPro cuts staff, considers selling company after weak holiday sales

A bill making it mandatory for drone owners to register for a national database is expected to be published within months. "Our December 10 holiday price reduction provided a sharp increase in sell-through".

"GoPro is committed to turning our business around in 2018", Woodman said in a statement. The selling did subside somewhat later in the session, however, on a CNBC report that the company had hired JPMorgan to oversee a potential sale.

The company said it saw lower than expected revenue in the fourth quarter of 2017. The premium model now goes for $399, down from $499. Its new device, the Hero6 Black, has seen a price cut of $100, and you can likely expect more aggressive promotions and new cameras coming soon. To this we also have to add the recall of approximately 2'500 Karma drones - due to power loss operation - that happened back in November of 2016 and whatever implications it had on the brand value and product it self. GoPro will sell its remaining Karma drone inventory and continue to provide service and support to existing owners but once the current inventory is gone, it'll be game over for the aerial division. The badly bungled launch didn't help, either.

In its statement today, GoPro also cited the hard regulatory regimes in the USA and Europe as the reason why it doesn't think the drone market will be lucrative in the long term. GoPro said it will reduce its global workforce from 1,254 employees to fewer than 1,000 employees worldwide, leaving at least 250 out of work. This will cut costs, but it's also an indication that GoPro's growth story is dead. According to the sources, GoPro is not currently in any active talks with a possible buyer, and nor is it clear whether there are any interested suitors right now. Its holiday results were downright bad, and its disastrous attempt to enter the drone market is the kind of mistake that well-run companies seldom make.

Like this: