GoPro Lays Off 250+ Employees, Will Exit the Drone Market 6

It seems things at GoPro aren't ideal. On the bright side, the new HERO6 Black camera is now more affordable for all.

GoPro Lays Off 250+ Employees, Will Exit the Drone Market

In a press release announcing their less-than-stellar preliminary Fourth Quarter 2017 financial results, GoPro states that they are implementing the following changes:

  • GoPro is reducing its global workforce from 1,254 employees as of September 30, 2017 to fewer than 1,000 employees worldwide.
  • GoPro founder and CEO Nicholas Woodman will reduce his 2018 cash compensation to $1.
  • Although Karma reached the #2 market position in its price band in 2017, the product faces margin challenges in an extremely competitive aerial market. Furthermore, a hostile regulatory environment in Europe and the United States will likely reduce the total addressable market in the years ahead. These factors make the aerial market untenable and GoPro will exit the market after selling its remaining Karma inventory. GoPro will continue to provide service and support to Karma customers.

The changes are, in part, a result of soft demand for the HERO5 Black camera at the original price. Recall issues and stiff competition with the Karma drone couldn't have helped either.

On January 7, GoPro lowered the price of the recently released HERO6 Black from $499 to $399.

CNBC reports:

 

Shares of GoPro stock fell 30 percent early on Monday, January 8 and have since rebounded a little. "GoPro is committed to turning our business around in 2018," said Woodman.

Later in the day, CNBC reported that GoPro was working with JP Morgan on a potential sale:

 

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6 comments
  • mtnrush666

    1/11/2018 6:56 PM

    Go Pro pricing was getting ridiculous....like should I buy a new suspension fork or a Hero 6!

  • manhattanprjkt83

    1/11/2018 12:09 PM

    Realistically the only thing i use my goPro for at this point is stills...Which I do enjoy...This summer we were on a heli trip and i set that to shoot 2 sec intervals, got some great photos in the alpine I would not have stopped to take.

  • jeff.brines

    1/9/2018 8:55 AM

    FYI, Nick came out and said they are not shopping themselves.

    Crazy company. And in my 7 years covering markets, I've never seen a CEO do what Nick did with respect to his own stock. Nose dive.

  • Mike Buell

    1/9/2018 11:09 AM

    Ha, I clicked this story thinking to myself, the first comment will be from Jeff!

    What are your thoughts on the new over capture product they released today for the fusion. Haven't seen much chatter about this yet. I'm by no means an editing pro, but this looks very usable and like nothing I've seen before.

    Almost seems like GPRO got all its negative announcements out of the way yesterday, and are now trying to reset and get into the good stuff. Though at this point they have a long way to go to recapture any large scale investor confidence. The Karma discontinuation might be a bit of a surprise, they layoffs in some form were expected as they announced this would happen a while back. I'm kinda wondering if this one finally bottomed?

    From a purely consumer mindset, over capture looks pretty cool to me!
    https://gopro.com/news/gopro-unlocks-mobile-overcapture-experience-for-fusion-camera

  • jeff.brines

    1/9/2018 11:15 AM

    Eh. Its cool, but more of a gimmick than something real.

    The deal with GoPro is this...

    They are NOT a technology company. They own next to no intellectual property. They are basically repackaging hardware that other's manufacture.

    Problem is they are getting dominated by all the knock offs. To add, editing is still hard, and most people have no real incentive to sit in front of a computer or phone to look rad when a quick photo to the 'gram may get them just as much "fame" or "attention".

    I would not be surprised to see them get bought out. But sales are not going to keep going up. Most users bought one, and they sit on the shelf 99% of the time. Most users see no reason to replace them, especially as phones get better and better and POV more and more played out.

    I have incentive to use my cameras. I live in a rad place. I can actually monetize what I shoot...and I still leave mine behind more times than not.

    So yeah, in short, they are the modern Flip Cam. The modern Polaroid.

    My $0.02.

  • Stiksandstones

    1/10/2018 9:03 PM

    $100 and below knock off cams on Amazon, are the name of the game. Why spend $250 plus for Gopro? is the quality that much better? do you NEED quality to make a dumb video of your run at whistler?

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