The Company Pulls Out Of The Drone Industry
GoPro is committed to putting 2017 in the past and staring the new year off on the right foot. The company released a statement which included financial results and changes the company is making in 2018. Among the changes, the company announced that they will be reducing their global workforce “to fewer than 1,000 employees worldwide” and that Nicholas Woodman, GoPro founder, and CEO, “will reduce his 2018 cash compensation to $1″. The company also announced the end of the drone era and the company’s official departure from the drone industry.
While the company states although the Karma Drone saw success, there were multiple factors that lead to the final decision. The factors in the decision to leave the market involved the margin challenges within the”extremely competitive aerial market”, which made it very difficult for the company to try and compete. They also attributed their decision to “a hostile regulatory environment in Europe and the U.S.” which they believe “will likely reduce the total addressable market in the years ahead”.
The Karma Drone was released back in September of 2016. While the buildup to the launch and the launch itself was insane, the Karma itself fell short. The company issued the “Karma Recall and Refund Program” in November 2016, when some devices lost power during flight, making them literally fall out of the sky.
While the drone did get a second chance in early 2017 when GoPro relaunched the Karma with a redesigned the battery latch, the company suffered a significant financial loss in 2016.
GoPro plans to sell its remaining Karma inventory and but did say that they will continue to provide service and support to Karma customers.
“GoPro is committed to turning our business around in 2018,” said Nicholas Woodman. “We entered the new year with strong sell-through and are excited with our hardware and software roadmap. We expect that going forward, our roadmap coupled with a lower operating expense model will enable GoPro to return to profitability and growth in the second half of 2018.”
GoPro, while we are sad to see you go, we wish you the best of luck in 2018 and look forward to seeing what 2018 has in store for your company.
For more information, visit www.gopro.com