GoPro exits drone market and slashes jobs amid sales warning

REUTERS  Mike Segar

REUTERS Mike Segar

GoPro's shares recovered somewhat after the news of the possible sale, down 11.30% to $6.67 in mid-day trading on Monday.

Sport-camera maker GoPro confirmed Monday it will slash at least 20 percent of its workforce and drop its Karma drone business as it restructures operations.

GoPro will discontinue production and sales of its Karma drone, which it claims reached the number two market position in its price band in 2017.

"If there are opportunities for us to unite with a bigger parent company to scale GoPro even bigger, that is something that we would look at", Woodman said.

FILE - In this Thursday, June 26, 2014, file photo, GoPro CEO Nick Woodman celebrates his company's IPO at the Nasdaq MarketSite in NY.

"Of course we need to run the business as though we're going to be independent, and we're planning accordingly". The GoPro Karma had managed to grab the number two spot in U.S. drone sales, the company pointed out, but warned that a "hostile regulatory environment" for the flying gadgets meant the segment was only going to get tougher to compete in. GoPro is cutting staff and expects a sharp decline in fourth-quarter revenue after facing weak demand for cameras during the 2017 holiday season.




One obvious name that has been floated before when it comes to finding buyer for GoPro is Apple.

In the years since its 2014 initial public offering, formerly high-flying GoPro has sharply narrowed its vision and held several rounds of layoffs.

GoPro will release a more detailed financial details in February. Which tech firm do you think would be the right fit?

"These factors make the aerial market untenable and GoPro will exit the market after selling its remaining Karma inventory".

GoPro's stock price went on a ride today.

The company may also be putting itself up for sale: According to CNBC, the company has hired JP Morgan Chase to seek a potential sale.

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