A tough market and rocky financials have forced GoPro to shut down its entire drone division.
During the latest earnings report GoPro announced that it will be laying off its entire drone project and reduce CEO Nicholas Woodman’s pay to $1 in an effort to return the company to profit in the second half of 2018.
In the Game of Drones it seems you either win or you die as the Karma made it to number two. DJI was a clear king of the market with its high quality Phantom and Spark range while the Karma was viewed as an expensive and unfinished product that was subject to a complete recall in November of 2016.
The problems from the drone division contributed to a US$373 million loss in 2016 and only slightly better financials in 2017.
The company stated that the Karma drone division will shut down and all inventory will be sold off. Existing flyers have been reassured that GoPro will continue to support existing Karma customers.
In the company’s fourth round of job cuts since 2016, the workforce has reduced from 1,254 employees to fewer than 1000 and the market also seems to have softened for existing camera models prompting a price drop of US$100 for the latest Hero6 action camera.
The company has not ruled out considering being acquired by another company as an option.