In a sign of troubled times ahead, camera maker GoPro has decided to cut 20 per cent of its global workforce.
GoPro is planning to re-structure through a US$80 million cost-cutting program, which will see least 255 employees lose their jobs to achieve a headcount of "fewer than 1,000 employees worldwide".
The company will also exit the drone business and stop manufacturing its Karma line of aerial drones.
On top of that, the cash compensation for the company's CEO and co-founder, Nicholas Woodman, will get slashed to just $US1 this year.
This is in comparison to his $US800,000 salary and US$1.2 million target bonus in 2016.
After the market digested this news, GoPro's shares plunged to by almost 30 per cent — to an all-time low of $US5.10 in early morning trade on Monday (New York time).
By the close of trade, it moderated its losses to 12.8 per cent to achieve a closing share price of $US6.56.
GoPro's fortunes have become so dire that it is even open to the idea of getting sold to another company.
Disappointing revenue
The trigger for these extreme measures was GoPro's announcement that it expects disappointing revenue results for the last quarter.
In particular, the company forecast its revenue will fall sharply by 37 per cent to $US340 million, which is far short of Wall Street estimates (of a more lofty $US472 million).
GoPro also had to slash prices on its cameras to drive more sales, as it faced weak demand for its products during the holiday season.
Back in its hey-day (October 2014), the company's share price was around $US87, which is 17 times higher than its current value.
"At the start of the holiday quarter we saw soft demand for our HERO5 Black camera," Mr 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."
In an announcement to the market, the company said it has lowered the price of its premium model, HERO6 Black, from $US499 to $US399 "to align with its good, better, best product strategy".
