A report from TechCrunch claims that action cam and drone manufacturer GoPro is set to lay off between 200 and 300 staff in the coming days. Most of those job losses are expected to fall in the company’s underperforming aerial division.
According to TechCrunch‘s sources, a letter to soon-to-be-departing GoPro employees said the cuts are part of a larger restructuring “to better align our resources with business requirements”.
In other words, and upcoming earnings report isn’t expected to bring positive news regarding sales.
The same sources confirmed that the company has already relieved impacted employees of duties but will keep them on the payroll until later this month – conveniently after the publicity that comes with CES.
Read more: GoPro Karma Hits the Market…Again
Is there still hope for the GoPro Karma?
Has there been a more apt drone industry metaphor than the GoPro Karma falling out of the sky? Ever since those reports started coming out and the inevitable recall, the Karma has been doomed. But really the Karma was equally undermined by its own technical limitations and DJI’s recent releases.
The Chinese manufacturer has a stranglehold on the market and many OEMs, such as 3DR, have had to look elsewhere for a viable business case.
Ultimately, the Karma needed to be something special to really compete. The Mavic Pro, launched a week after the Karma in September 2016, comfortably beats the GoPro drone in almost every technical department. And the more recent DJI Spark offers an even more appealing and affordable choice of drone to newcomers entering the market.
But that doesn’t mean that future iterations of the GoPro Karma won’t be given a chance. The company still has huge brand recognition and the Karma wasn’t without its positives. A modular drone is still an interesting concept.
Time will tell if the latest round of job cuts is the final nail in the coffin of GoPro’s aerial ambitions.
Until we hear from the company, we won’t know anything for sure. No doubt Nick Woodman will be offering clarification on the Karma’s future at CES next week.