Investing.com - Shares of GoPro crashed around 30% on Monday after the company announced preliminary results for the fourth quarter and cut revenue forecasts.
The camera maker estimated that fourth quarter revenue would be approximately $340 million, compared to its prior forecast last November of $460 to $480 million.
The firm also confirmed rumors of layoffs, announcing that it would cut its workforce from the current 1,254 people to less than 1,000.
The company also announced that GoPro founder and CEO Nicholas Woodman will reduce his 2018 cash compensation to $1.
GoPro further explained that it had seen soft demand for its HERO5 Black camera and noted that it cut the price of its premium model, HERO6 Black from $499 to $399 “to alight with its good, better best product strategy.
GoPro also announced that it would exit the drone market despite having reached a number two market position in its price band with its Karma product.
The company explained that the product faces margin challenges in an extremely competitive aerial market and added that “a hostile regulatory environment in Europe and the United States will likely reduce the total addressable market in the years ahead.”
“GoPro is committed to turning our business around in 2018,” Woodman insisted.
“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,” he added.
Shares of GoPro Inc (NASDAQ:GPRO) returned to trade after having been halted ahead of the opening bell. At 10:01AM ET (15:01GMT), the firm's shares plunged 28.32% to $5.39.