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GoPro cuts 20 percent of jobs, drops drones

By Bloomberg
Published: January 8, 2018, 5:32pm

GoPro said it’s cutting more than 20 percent of its global workforce and putting an end to its drone business after a disappointing fourth quarter.

The company said it now expects sales of about $340 million, well short of its own previous projection of as much as $480 million and the average analyst estimate of $472 million. Revenue took an $80 million hit due to discounting for its Karma drones, as well as its Hero line of cameras, over the holiday season, the company said.

The stock fell as much as 33 percent Monday to $5.04, its biggest ever drop and its lowest price since going public in 2014.

GoPro has faced intensifying competition in the action camera market, as big tech companies from Samsung Electronics to Google have started selling similar products. Some analysts have said that the Hero cameras have become a commodity, and that GoPro’s main selling point now is its brand.

In November, Raymond James analyst Tavis McCourt wrote that there hasn’t been a noticeable bump from GoPro’s newest camera.

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