GoPro Stock Drops 30 Percent After Announcing Layoffs

Camera maker GoPro announced Monday that it will be leaving the drone business and laying off at least 250 employees. The company’s stock (GPRO) plunged nearly 30 percent in response to the announcement.

GoPro’s decision to exit the drone business was driven by what the company views as a “hostile regulatory environment in Europe and the United States” that will make the aerial make “untenable” going forward.

GoPro will discontinue production and sales of its Karma drone, which it claims reached the number two market position in its price band in 2017. The company does intend to continue to provide service and support to those who have already purchased the $800 drone.

The company also intends to shrink its workforce by laying off about 20 percent of its workforce. GoPro said it will reduce its global workforce from 1,254 employees to fewer than 1,000 employees worldwide, leaving at least 250 out of work.

Nick Woodman, the founder and CEO of GoPro, announced he would reduce his cash compensation to $1 for 2018.

"GoPro is committed to turning our business around in 2018," Woodman said in a statement. "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."

CNBC reported GoPro has hired J.P. Morgan Chase to help it seek a potential sale. Company head Nick Woodman also told CNBC, "If there are opportunities for us to unite with a bigger parent company to scale GoPro even bigger, that is something that we would look at," Woodman said.