[NetEase smart news January 6 news] According to foreign media reports, sources from GoPro learned that the company will lay off 200 to 300 people this week. The layoffs were mainly concentrated in the aerial photography department, which is responsible for its Karma drone products.
In a letter to employees, GoPro stated that the layoffs were part of a larger restructuring, "to better align our resources with business needs."
According to sources, the company today lifted the positions of the affected employees but will retain their salaries until February 16. This news may be released after CES. According to past practice, layoffs may be announced at the same time as the release of the new quarterly earnings.
From GoPro’s move into the drone market in the past few years, it seems that this time-saving move will not be surprising. From the very beginning, the GoPro's Karma drone has been a headache. At the end of last year, after reports that drones fell from the sky, its technical limitations and large-scale recalls all caused headaches.
The company linked the occurrence of this potentially dangerous accident with the disconnection of batteries on the aircraft. GoPro temporarily suspended the sale of this product, and in February it will be brought back to the market. This return prompted GoPro to obtain some positive financial data. After the restart, the company's sales eventually achieved growth. However, the attractiveness of “Karma†was influenced by the former partner Dajiang, who launched its own Portable drones - Mavik Pro and Spark.
According to reports, the two companies have been studying this project and will eventually become Karma, but in the end it is only part of the way. Of course, DJI's extensive experience in this area has made this company occupy an important position in GoPro's latest diversification attempt. According to reports, the company also seeks to cooperate with other drone manufacturers, including 3DR in Southern California.
In recent years, diversified investments have been an important part of CEO Nick Woodman's business plan as a large number of competing products appear on the market. GoPro is still synonymous with this area, but with the popularity of smartphone cameras and cheaper alternatives, GoPro has had to explore more sources of revenue, including drones and VR.
But it is these diversified attempts that have influenced the company's development. GoPro's entertainment division is the target department for layoffs at the end of 2016.
In 2016, the company experienced the worst year ever. GoPro left 100 people from the entertainment sector at the end of 2016 and then cut 270 jobs in March 2017. Although the company’s revenue improved in the second quarter of 2017, it seems that its efforts to save expenses and streamline its business focus have had some effect. However, this improvement is not enough to support the overall adjustment.
(From: TechCrunch Compiler: NetEase Smart Reviewer: nariii)
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