GoPro’s Wild Roller‑Coaster: 20% Layoffs, a Drone Exit, and One-Dollar Pay
What’s going on?
Guess what the camera giant did on January 8? GoPro announced a massive rewrite of its workforce. They’re cutting more than 20 %—so that means 1,254 employees will shrink to under a thousand. Pretty serious, right?
Chicken Nuggets for the CEO?
And then there’s chief Nicholas Woodman’s new salary—you guessed it, just one dollar for the year. He’s basically telling investors, “You’ll take what I get, and we’ll keep moving.”
Got a bigger fish? Can I come on board!
Woodman told CNBC that while the plan is to keep GoPro independent, they’re open to a deal with a larger parent company. Think of it like a business “unite”—“If we can grow bigger together, we’re game.” He’s still planning to run the company like a startup, but he says, “Let’s keep it that way.”
Reality Check: Sales Numbers Miss the Mark
GoPro projected fourth‑quarter sales at $340 million—less than the $474 million analysts were betting on. Forecasts, cash flow, all feeling the pinch.
Dealing with Holiday Sales—Price Slashes and Low Margins
- Mid‑holiday, prices on some HERO cameras were cut to keep sales rolling.
- This helped lift volume but sliced through the profit margins.
- Woodman remarked: “Consumers weren’t happy purchasing the HERO5 Black at the same price it launched a year ago.”
- Despite heavy marketing, the price tag was too high for many.
Drones—The End of an Era
GoPro will ditch its drone business, including the popularity that made the Karma the second best seller in its price class. The company bowed out of the “extremely competitive” drone market.
The reason? A rough regulatory environment in the EU and USA that would cut the market size, making the aerial side “untenable.” While they’ll sell any remaining inventory, GoPro promises to keep supporting Karma customers.
Share Price Reaction
When the announcement hit the market, shares fell 13.5 % to $6.52—shaving low as $5.04 earlier that day. Not exactly a comfort zone for investors.
All in all, GoPro is stepping back, re‑focusing on its core, and getting ready to ride the wave in 2018—quick‑sand style. Stay tuned!
