Californian action camera manufacturer GoPro has laid off between 200 and 300 staff, according to a report by TechCrunch. The report claims the redundancies have been made in the division of the company that builds it aerial offering—the Karma drone—and that GoPro cited a need to “better align our resources with business requirements” as the reason for the layoffs.
GoPro has suffered in recent times, with its share price taking a hammering and profits showing in negative figures. One of the main reasons for this was the much-anticipated Karma drone, which had to be recalled after it was discovered the battery could shake itself loose, causing the device to lose power mid-flight and plummet back to Earth.
The company claims that, since returning to stores, Karma has been the number 2 best-selling drone priced above $1,000 in the US for a period of six months up to September 2017. Even so, it would have faced (and still does) stiff competition from former partner DJI.
GoPro’s November report to shareholders announced increased revenue of $300 million, up 37% on the same quarter last year, and a gross margin of 40%. The company was in profit too, making $15 million against a loss of $104 million in the third quarter of 2016. However, the share price has remained low, with current trading at $7.51 against a high of $90 in October 2014.
After 370 job cuts in 2016 and early 2017 the company stated that it employed 1,327 people, but that number is now set to drop to close to 1,000, according to the TechCrunch report.
GoPro, which has been operating under the name since 2004, hasn’t commented on the claims, but the job losses have come between the end of the financial year (December 31st) and the company’s annual report, which would seem the logical time to do it.