GoPro expected its Karma drone to boost growth. Instead, the action camera maker confirmed that it is ending Karma's production and will reduce nearly 300 jobs, or more than 20% of its global workforce.
Karma had a disastrous launch in 2016. Just a few weeks after its launch, GoPro issued a massive recall of 2,500 units due to faulty engineering caused the drones to lose power in mid-flight and fall from the sky.
The drone remained the second most popular of its price class after retirement, said GoPro, but an "extremely competitive" air market, "as well as a" hostile regulatory environment "in Europe and the US did that the future of the product was "unsustainable."
The company cut the prices of drones as well as its line of Hero cameras during the holiday period, which reduced $ 80 million of the expected revenue for the fourth quarter, which is now The company estimates that it will add $ 340 million, which will not reach the $ 472 million that analysts expect, GoPro shares fell up to 32% to $ 5.04 per share today, the biggest drop and the lowest price that shares The company has suffered since its release in 2014, reported Bloomberg.
As Quartz previously reported, Karma was destined to revitalize the company after a difficult year in 2016, characterized by the fall of sales, unimpressive new products and a delay in the publication of Karma.