In a day of dramatic developments for the action camera maker, GoPro has announced it is leaving the drone market and its CEO has effectively put the company up for sale.
Shares tumbled around 20% in the company today after fourth quarter results from 2017 disappointed, prompting a flurry of activity from the embattled company.
GoPro CEO Nick Woodman announced the company will no longer make drones, drawing a line under its Karma, which failed to recover from a recall last year after units were reported to fall from the sky.
Woodman also announced he will reduce his compensation from the company to just $1 in 2018, and confirmed reports that GoPro will reduce its global workforce by nearly 20%.
“GoPro is committed to turning our business around in 2018,” Woodman said in a statement on the company’s website.
“We entered the new year with strong sell-through and are excited with our hardware and software roadmap. 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.”
New reports from CNBC now suggest that GoPro has put itself up for sale, having hired JP Morgan Chase months ago to broker a sale.
In fact, Woodman told CNBC today that, “If there are opportunities for us to unite with a bigger parent company to scale GoPro even bigger, that is something that we would look at.”