GoPro exits drones and cuts staff by a fifth as sales fall
Shares in the action camera specialist lose almost a third of their value in early deals as it takes action to combat sales woes.
GoPro says it is to exit the drone market as part of a restructuring that will include cutting its workforce by more than a fifth to below 1,000 staff.
The action camera specialist said it was reacting to a slump in sales during its core US holiday season.
Its forecasts of a weaker outlook also contributed to GoPro shares plunging by almost 30% in early US trading.
They were later 20% down as the session gathered momentum – leaving the stock at $6 (£4.42) per share.
The company went public at $24 per share in 2014.
California-based GoPro said its decision to leave the drone market was down to tough competition and tighter regulation of the sector.
Of greater concern for analysts was the marked slowdown in overall sales – now expected to be $130m (£95.9m) below initial estimates of $470m (£346m).
Founder and chief executive Nicholas Woodman said: “Despite significant marketing support, we found consumers were reluctant to purchase HERO5 Black at the same price it launched at one year earlier.”