GoPro is killing its drone business and slashing 20 percent of its staff after reporting weak demand for its products on Monday.
The San Mateo-based company, which had 1,254 employees as of Sept. 30, is reducing that number to fewer than 1,000. Founder and CEO Nicholas Woodman is also cutting his annual pay to $1. The company had previously announced a layoff of about 200 employees in November 2016.
The company said its Karma drone, which cost about $800 without a camera or about $1,100 with a camera, was the second-largest seller in its price range. But it said a hostile regulatory environment in Europe and the United States, and extremely competitive market, makes staying in the business untenable. GoPro said it will exit the business once it sells off its remaining Karma inventory.
The company was already forced to announce a price cut on Dec. 10 for its core camera product, the HERO5, due to weak pre-holiday sales. GoPro said that helped boost sales. Then on Sunday it also cut the price of its premium HERO6 camera.
Preliminary results show the company had fourth quarter revenue of $340 million, down $200 million, or 37 percent from what it reported in the fourth quarter a year earlier.
Shares of GoPro plunged 23 percent in morning trading Monday on the news. Shares had already lost 13 percent in 2017.