Earlier in the day, the company lowered its fourth-quarter revenue forecast, following weak demand for its cameras in the holiday season, and announced a plan to exit the drone business. Now, the company says that it will focus on innovations in the core product lines. It also released preliminary earnings Monday for the final quarter of 2017 that fell short of analysts' expectations.
In its statement today, GoPro also cited the hard regulatory regimes in the U.S. and Europe as the reason why it doesn't think the drone market will be lucrative in the long term.
The company also said that Woodman's compensation would drop to $1 during 2018 as it attempts to become profitable in the second half of the year.
J.P. Morgan helped underwrite GoPro's initial public offering in 2014.
GoPro is existing the drone market, the company announced on Monday.
The company, which had 1,254 emplyees as of September 30, is reducing that number to fewer than 1,000.
The Karma drone was meant to be GoPro's next big product when it launched amid much fanfare in 2016. That followed multiple reports of technical issues, which caused the drones to drop from the sky as they were flying.
GoPro said it will sell through its remaining Karma inventory and will continue to provide service and support to Karma customers.
GoPro has been struggling financially for several years, and was counting on the Karma and the drone business to help them retain market share. In the months that GoPro was dealing with the, uh, fallout from the Karma's problems, DJI released two new smaller and cheaper drones that essentially made the Karma obsolete.
GoPro is exploring a sale after a tumultuous couple of years that included multiple rounds of layoffs, shrinking sales, and a plummeting stock price. GoPro's hiring of JPMorgan was reported earlier by CNBC.