GoPro drops drones as sales plunge

Camera-maker GoPro said it is getting out of the drone business following "hostile" regulations in the US and Europe.

The firm made the announcement on Monday as it warned investors of disappointing end-of-year results and layoffs.

GoPro said revenue fell almost 40% in the fourth quarter to $340m compared with the same period in 2016.

The firm said it is committed to "turning around" the business.

On Monday, GoPro said sales struggled during the critical holiday shopping season.

The firm was forced to slash prices of key products, including the HERO5 Black camera, to increase demand in a move that cost about $80m.

Shares plunged almost a quarter following the announcement.

GoPro said it will stop making aerial cameras, citing an "extremely competitive" market and hostile regulatory climate.

The company is cutting more than 250 staff from its workforce, which numbered more than 1,250 at the end of September.

The salary of chief executive Nicholas Woodman has also been cut to just $1 in an effort to reduce expenses.

He hoped the actions would return the firm to profitability in the second half of 2018.

GoPro will release a more detailed financial details in February.

Founded in 2004, the California-based firm is known for its small, portable video cameras.

Its shares surged after listing in New York in 2014 but have fallen more recently following increased competition from smartphones.

There have also been issues with some products, including the recall of its Karma aerial camera in 2016, after unexpected crashes.

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