GoPro Inc (NASDAQ:GPRO) announced that the company will be reducing its workforce due to its struggles during the fourth quarter of 2017.
The personal camera manufacturer and distributor says that it will cut more than 250 jobs as it will go from having 1,254 employees to less than 1,000 in 2018. GoPro added that it will exit the drone space, while also reducing CEO 2018 compensation to $1.
It was expected that the company would be reducing its workforce following a report from TechCrunch last week that noted plenty of firings, with several hundred employees being booted out of the company, but kept on the books until the middle of February. It is believed that most layoffs happened in the engineering department of the Karma drone.
In the announcement, GoPro added that it projects its fourth quarter revenue to come in at roughly $340 million, which would mark a 37% fall compared to the fourth quarter of 2016. The company suffered a negative impact of approximately $80 for price protection for its Hero, Session and Karma products.
“As we noted in our November earnings call, at the start of the holiday quarter we saw soft demand for our HERO5 Black camera,” said GoPro founder and CEO Nicholas Woodman in a released statement.
“Despite significant marketing support, we found consumers were reluctant to purchase HERO5 Black at the same price it launched at one year earlier,” he added. “Our December 10 holiday price reduction provided a sharp increase in sell-through.”
GPRO stock plummeted 19.9% on Monday.