The GoPro has recently announced that they have decided as a company to not extend their drone business. The company says their decision is due to various reasons such as the challenges of an extremely competitive market. Also, the difficulty of making decent profits.
The CEO of the company announced their decision during their profit and earnings reports on January 8, 2018. Apart from stating that they will no longer be apart of the drone business the CEO of GoPro says that the Karma Drone will be their very last drone that will be engineering. The company has been in a load of struggles due to the competitive field of drone business and selling.
Due To Low Profits, GoPro Will Be Laying Off Hundreds Of Workers
The CEO of GoPro Nicholas Woodmans salary is taking in less money. Nicholas Woodman says his salary will reduce only by one dollar. However, it will assist the company during its times of struggles to manage the rocky financial issues.
The group’s first drone came about during the last months of 2016. Thousands of customers say that the first drone by GoPro was too expensive and overpriced. Later in early November 2017, there was a recall on all GoPro Karma drone products because the drones were losing power while in use.
Due to the recall in 2017, the company lost nearly 375 million dollars because of the faulty drones made in 2016. Little by little the company improved its profits in 2017, reports the CEO, Nicholas Woodman. The company also blames their recent quits for making drones due to the newest regulations that have been moot in the US and Europe.
Although, the news of layoff of GoPro workers was to be expected because there reports about it weeks before. It is the company’s fourth time with job layoffs since the drones made in 2016.