Jan. 8 (UPI) -- Action camera company GoPro plans to reduce its workforce by 20 percent and stop producing drones following its preliminary fourth-quarter report.
The California-based company predicted a decline in its fourth-quarter revenue including a negative impact of approximately $80 million for price protection on its HERO6 Black, HERO5 Black and HERO5 Session cameras, and its Karma drone.
"GoPro is committed to turning our business around in 2018," GoPro CEO Nicholas Woodman said. "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."
As part of its plan to reduce operating costs by $80 million, GoPro is reducing its global workforce from 1,254 employees to fewer than 1,000 employees worldwide.
The company also plans to exit the drone market after selling the remaining stock of its Karma drones. GoPro launched the Karma in 2016 and it was recalled about two weeks later after reports the drones would lose power during operation.
Woodman also will reduce his cash compensation to $1, down from $800,000 in 2016.
GoPro's Chief Operating Officer Charles Prober will exit the company Feb. 16 and senior vice president of corporate development Sharon Zezima will resign effective March 30, according to a company filing with the Securities and Exchange Commission.
Woodman told CNBC the company would consider a sale or partnership with another, although it plans to remain independent.
"If there are opportunities for us to unite with a bigger parent company to scale GoPro even bigger, that is something that we would look at," he said.