Tech

GoPro issues weak guidance and plans to cut workforce by 20%, shares plunge

Key Points
  • GoPro will layoff at least 250 employees.
  • The company is leaving the drone business, citing future regulation and intense competition.
Nick Woodman, founder and chief executive officer of GoPro Inc., speaks during an event in San Francisco, California, U.S., on Thursday, Sept. 28, 2017.
David Paul Morris | Bloomberg | Getty Images

GoPro lowered guidance Monday and confirmed that it will lay off of at least 250 employees.

The company also said it was leaving the drone business, citing future regulation and intense competition, ending sales of its Karma camera drone.

Founder and CEO Nick Woodman will reduce his cash compensation to $1 for 2018, according to a company statement.

Shares plunged 23 percent in early trading before halting.

"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."

GoPro said it expects fourth quarter revenue of $340 million, up just slightly from $330 million revenue in the prior quarter.

The company also reduced the price of its newest premium adventure camera, the Hero6 Black, by $100.