Published: Thu, January 11, 2018
Health Care | By Alice Shelton

GoPro cuts more than 250 jobs, drops Karma drone business

GoPro cuts more than 250 jobs, drops Karma drone business

The company also said that Woodman's compensation would drop to $1 during 2018 as it attempts to become profitable in the second half of the year.

The company also intends to shrink its workforce by laying off about 20 percent of its workforce. We're now hearing that the company could be trying to sell itself, but would anyone buy GoPro in its current state? Following intense competition and low-profit margins, the company is finding it incredibly hard to make its drone business sustainable.

Demand for the Hero5 camera was soft during the holiday season, GoPro CEO Nicholas Woodman said in a statement.

Following a 25 percent plunge, GoPro Inc (NASDAQ: GPRO) sharply recovered Monday on news that it may be exploring a sale. The company will continue to operate independently if it ends up being acquired by another company, but it isn't clear as to exactly how much GoPro wants for its sale as of yet.

GoPro Hero6 Black
GoPro cuts more than 250 jobs, drops Karma drone business

The action camera company has hired J.P. Morgan Chase to help it find a suitor, according to a CNBC report on Monday that cites unnamed sources.

GoPro stock tanked after this morning's negative earnings preannouncement, but after the report that the company might be seeking a buyer, the shares bounced. Since then, its Karma Drone project has been closed down and GoPro was forced to cut the price of its Hero6 Black camera by $100 to spur sales. Bank of America upped their price objective on shares of GoPro from $8.00 to $9.00 and gave the company an "underperform" rating in a research note on Tuesday, October 31st. The company now estimates its fourth-quarter sales at about $340 million, while it previously had been expecting about $480 million in sales. Wittine points out a quote that stands out from his conversations is a supply chain contact looking for a year of more challenges lying ahead for GoPro.

GoPro released its preliminary fourth quarter 2017 report, which that the company is in tough shape: They are firing hundreds of employees and will also exit the drone market.

Woodman, 42, rocketed to the top of the Bloomberg Pay Index, a ranking of the highest-paid USA executives, as GoPro shares soared after its initial public offering, boosting the value of his 2014 equity grant.

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