The latest job cuts will reduce GoPro's workforce to less than 1,000, down from about 1,500 at the end of 2016. Over the last ninety days, insiders have sold 704,907 shares of company stock valued at $6,478,800.
Additionally, GoPro said it is pulling the plug on its Karma drone business after more than a year of false starts, product stumbles and disappointing sales.
All the bad news from GoPro slammed the company's shares Monday, as GoPro's stock price fell 21 percent to $5.95.
GoPro stock tanked after this morning's negative earnings preannouncement, but after the report that the company might be seeking a buyer, the shares bounced.
"With that said, if there were any opportunity for GoPro to partner up with a larger organization that could help us scale the company, scale our brand and reach to consumers, then that's certainly something that we would consider".
The news follows GoPro CEO Nick Woodman's comments to CNBC on Monday in which he said the company would be open to selling itself to a larger company, but otherwise plans to operate as a standalone business.
Revenue is estimated at about $340 million for the 4th quarter of 2017, way short of its previous estimate of $480 million and Wall Street estimates of $472 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.
GoPro (NASDAQ:GPRO)'s stock had its "sell" rating reiterated by analysts at Dougherty & Co in a research report issued to clients and investors on Tuesday, Marketbeat.com reports. It's worth noting that Canon Inc (ADR) (NYSE: CAJ) was reported Friday to be pursuing $3.53 billion in acquisitions over the next three years.
In addition to exiting the drone business, the company is laying off 20% of its workforce, or about 250 employees. GoPro executed a mass recall, but then came the DJI's Mavic Pro which completely defeated Karma in nearly every aspect, at a lower price point.