By Jamie Barrie P arrot SA, maker of the smart phone controlled toy drones will cut a third of its staff after having to lower prices over the holidays to compete with industry rivals. Parrot has been facing tough competition from the likes of DJI and GoPro Inc. to grab a share of a consumer drone market that is estimated to reach over $4 billion USD by 2024. While the fight has focused on additional features, like live streaming and high-definition cameras aimed at more serious consumers, the market has also been flooded with cheaper models from upstarts, competing on price. Parrot sales were short of what the company had forecast in the fourth quarter even as profitability fell in consumer drones, to a level unsustainable in the long-run.
Parrot’s revamp, which will cost the company $47.7 million USD and the company will cut 290 of its 840 jobs.
Meanwhile, Parrot’s commercial drones and systems for cars, including infotainment, performed in line with expectations. The company said it’s on track to sign a definitive agreement with Faurecia, one the largest international automotive parts manufacturer in the world.
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FEBRUARY 2017 • SPOTLIGHT ON BUSINESS MAGAZINE
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