GoPro is existing the drone market, the company announced on Monday. Following intense competition and low-profit margins, the company is finding it incredibly difficult to make its drone business sustainable. In addition to exiting the drone business, the company is laying off 20% of its workforce, or about 250 employees.
The move comes as GoPro looks to return to profitably from its struggling business, although the company’s CEO stated earlier on Monday that the company would be interested in a potential merger or acquisition of the firm. “GoPro is committed to turning our business around in 2018. 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,” said GoPro CEO Nick Woodman.
GoPro has reportedly hired J.P Morgan Chase to help the firm get ready for a potential acquisition, according to CNBC. GoPro worked with J.P Morgan in the past for its IPO. The company will continue to operate independently if it ends up being acquired by another company, but it isn’t clear as to exactly how much GoPro wants for its sale as of yet.