In the company's fourth quarter 2017 results announcement, it said it will discontinue its Karma drone and exit the category. GoPro's stock fell by as much as 32% to $5.04 a share today, the biggest drop and lowest price the company's stock has suffered since going public in 2014, Bloomberg reported.
The company will reduce its employees from 1,254 to fewer than 1,000, according to the corporate statement. The company's shares, which earlier dropped as much as 33 percent, pared some losses after the report, declining 11 percent to $6.67 at 1:55 p.m.in NY.More news: Jaguars defeat Bills 10-3
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Founder and CEO Nicholas Woodman is also cutting his annual pay to $1. "I think they made a strategic error in pursuing entry into such a competitive space, and it proves how hard consumer electronics innovation has become".
The company now expects fourth-quarter revenue of US$340 million, compared with its November projection of US$470 million, plus or minus US$10 million. The network's 15 live hours a day of business programming in North America (weekdays from 4:00 a.m. - 7:00 p.m. ET) is produced at CNBC's global headquarters in Englewood Cliffs, N.J., and includes reports from CNBC News bureaus worldwide. GoPro also said that would kill its Karma drone business amid poor sales and a glitch that caused the device to shut down in mid-flight and led to a recall after it debuted in late 2016.