The drone is one of the fastest rising gadgets in the tech world today. Drone and video production maker GoPro looked forward to capitalizing off the drone craze. But that’s probably not going to happen. GoPro cuts staff and entertainment plans.
As a result, GoPro announced they will cut 15% of it’s entire workforce. That means over 200 people will lose their employment, just in time for the Christmas season. But that’s not all. GoPro President Tony Bates is also stepping down. And he left high-level positions at Microsoft’s Skype Technologies to lead GoPro. Many thought this was going to be a golden age. Now, that’s hardly the case.
In addition to the layoffs, GoPro closes it’s entertainment division. GoPro depended on new products, camera Hero5, and new drone Karma, to boost sales. They released the new items in October 2016. But these new gadgets did nothing to help. Furthermore, they had to recall 2,500 drones. We don’t even know if they’ll ever distribute Karma again. Also, there the lawsuits. These lawsuits claim GoPro made false ‘too good to be true’ statements about Karma. Stocks fell off. In late September, stocks peaked at $17.15 a share. On November 29, they closed at $9.83 a share. Basically, in two months, GoPro stocks were nearly cut in half.
Maybe these layoffs can be a fresh start. The last time I check the ticker, stocks were back into the $10.00-$10.30 range. That’s a start. Personally, I think they should abandon the Karma project and start all over. Competition isn’t waiting. You see, Apple, Amazon, Snap Inc., and Chinese company DJI Technology Inc. all want to get in on the drone game. I’m sure more companies do too. So even after these changes, they don’t have long to mourn. They need to get back into the drone game, and fast. I’m sure Tony Bates is kicking himself for going to GoPro. But that’s just the way it goes sometimes. What is your future outlook for GoPro?