On January 6, according to reports from foreign media, GoPro has revealed that it will be laying off between 200 and 300 employees this week. The cuts are primarily affecting the aerial photography division, which is responsible for its Karma drone line of products. This move comes as part of a broader restructuring plan aimed at aligning the company’s resources more closely with its current business needs.
In an internal memo, GoPro explained that the layoffs were necessary to streamline operations and focus on areas where the company can grow more effectively. Affected employees have been informed about their positions, but they will continue to receive their salaries until February 16. The announcement is expected to come after the Consumer Electronics Show (CES), possibly alongside the release of the company’s quarterly financial results.
GoPro's foray into the drone market has not been smooth. Since launching the Karma drone, the product has faced several challenges, including technical issues and safety concerns. In late 2017, reports emerged of drones falling from the sky, leading to recalls and damaging the brand’s reputation. GoPro attributed these incidents to battery disconnections and temporarily halted sales. However, the product was reintroduced in February, and this return helped boost some positive financial performance.
Despite this, the Karma drone struggled to compete against strong rivals like DJI, whose Mavic Pro and Spark models offered similar features at more competitive prices. According to insiders, GoPro had initially partnered with DJI on the Karma project, but the collaboration didn’t fully materialize. DJI’s expertise in the drone space made it a significant player in GoPro’s diversification strategy, and the company has since explored partnerships with other manufacturers, such as 3DR in Southern California.
Over the years, CEO Nick Woodman has pushed for diversification as competition in the action camera market grew. While GoPro remains a well-known name in this space, the rise of smartphone cameras and cheaper alternatives forced the company to seek new revenue streams, including drones and virtual reality. However, these efforts haven’t always gone smoothly.
GoPro has experienced several rounds of layoffs over the past few years. In 2016, the company cut 100 jobs in its entertainment division, followed by an additional 270 layoffs in March 2017. Although revenue improved in the second quarter of 2017, the company’s cost-cutting measures and reorganization efforts only provided limited relief. The recent layoffs suggest that GoPro is still navigating through a challenging period as it tries to regain its footing in a highly competitive market.
(Source: TechCrunch | Compiled by NetEase Smart News | Reporter: nariii)
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