GoPro Drone Business Crashes

(RTTNews) - GoPro is shutting down its drone business and laying off 20% of its staff due to weak demand for its products.

The action-adventure camera maker has confirmed that it's cutting nearly 300 jobs. The company has 1,254 employees as of September 30, 2017, which will be reduced to "fewer than 1,000." The company had previously announced a layoff of about 200 employees in November of 2016.

According to GoPro, its Karma drone was the second most popular drone in its price class. Karma costs about $800 without a camera or about $1,100 with a camera. However, the company decided to stop its production because of highly competitive market for drones that affected its profit margin. Hostile regulatory environment in Europe and the United States has also weighed upon its decision.

GoPro said it will sells off its remaining Karma inventory. GoPro has also cut the price of the Hero6 Black camera from $499 to $399 to improve sales.

Meanwhile, Chief Executive Nick Woodman has cut his cash compensation to $1 for 2018.