There is news from GoPro that might irritate fans and investors: After further setbacks in business performance, CEO Nick Woodman has announced several countermeasures.
- The U.S.-based action camera maker is ending the experiment with its Karma drone, which has struggled with poor battery performance, technical issues and strong competition from China.
- GoPro is cutting more than 250 jobs, or one-fifth of its entire workforce.
- An investor is expected to help halt the decline of the once-successful company. "If the opportunity arises to partner with a larger umbrella company to make GoPro even bigger, that's definitely interesting to us," GoPro CEO Nick Woodman told CNBC.
For the fourth quarter of 2017, GoPro expects only $340 million in revenue - previous projections had been for around $470 million.
News of the preliminary quarterly figures sent GoPro's stock price tumbling on Monday. The stock plunged more than 30 percent at times to around $5.
The GoPro founder and CEO was combative. He wants to turn things around, Nick Woodman wrote: "We expect GoPro to return to profitability and growth in the second half of 2018 through our roadmap and a lower operating cost model."
For the fourth quarter of 2017, GoPro is expecting sales of only 340 million US dollars - previous forecasts had assumed sales of around 470 million dollars.
The news of the preliminary quarterly figures caused the GoPro share price to collapse on Monday. At times, the share fell by more than 30 percent to around USD 5.
The GoPro founder and chairman of the board Nick Woodman wrote: “We expect that going forward, our roadmap coupled with a lower operating expense model will enable GoPro to return to profitability and growth in the second half of 2018.“