GoPro’s founder and CEO Nick Woodman is taking a pay cut as the wearable camera-maker continues to struggle.
Woodman said on Monday that he would receive $1 in cash compensation in 2018. That compares to a salary of around $800,000, plus a performance-related cash bonus of $300,000, in 2016, the latest year for which data is available. Woodman, who once ranked among the world’s richest people, has seen his fortune fall along with the company’s stock price.
GoPro also gave a disappointing outlook and said it would reduce its global headcount by some 250 employees and exit the drone business.
Shares of the company were halted in pre-market trading, before plummeting 26%. They have lost a fifth of their value in the last twelve months.
GoPro, which was once a stock market darling with its wearable cameras beloved by adrenaline junkies, has been dogged by skepticism that it can be more than a one-trick pony with niche appeal. It has struggled to sell its cameras and drones, and during the all-important holiday season was forced to slash the price on several of its devices.
“Despite significant marketing support, we found consumers were reluctant to purchase HERO5 Black at the same price it launched at one year earlier,” said Woodman in a statement, noting that sales rose after the company slashed the price of the camera on December 10. GoPro also cut the price of its HERO6 Black camera from $499 to $399 on January 7.
The company said that revenue will likely come in around $340 million during the fourth quarter, which is sharply lower than the $460 million to $480 million that it had previously forecast and what Wall Street analysts were looking for.
GoPro also said it doesn’t expect to return to profitability until the second half of 2018. It has been fighting to get back in the black for two years and reported its first quarterly profit during that timeframe in November, helped by a spike in sales and aggressive cost cuts.
It is now trimming more expenses in its pursuit of profitability, confirming plans to lay-off more employees and throw in the towel on its consumer drone business. While it once had high hopes for its drone, called Karma, it has proven an expensive, failed experiment. GoPro described “an extremely competitive” drone market with tough margins, plus a “hostile” regulatory environment. GoPro said it will exit the business after it sells its remaining Karma drones.
GoPro reiterated its commitment to innovation and said it plans to introduce several new products in 2018 that are geared toward new and existing customers.