While in the middle of last year in Parrot They were promised very happy thanks to the fact that, after a long time and delays, they were finally in a position to launch their new drone on the market, six months later, they are experiencing too negative a time, so much so as to announce yesterday that they were going to lay off 290 employees, about a third of the total number of people who work on projects related to drones, due to the losses suffered by the company during the fourth quarter of last year.
Due precisely to these losses generated by the enormous failure during the launch of your first drone, the company announces that one of its first intentions for 2017 will be to redirect your product offering to focus on all those areas where their products are highly recognized and have higher profitability. In this line and always according to Parrot, apparently the main reason for these layoffs is the low profit margin offered by the drone market.
Parrot announces that it will lay off 290 employees from its drone division.
This is Parrot's way of recognizing not only that they have arrived late to the drone market, but that it is practically impossible at this point to launch a model and be able to stand up to companies of the size and draft of DJI, Chinese company that dominates the consumer drone market with an iron fist, something that gives them the option of, at a given moment, reducing the price of their models by reducing profit margins at prices at which other companies cannot compete.
This is not the first time that a company has spoken openly and even lashed out at DJI prices, not too long ago the American one 3D Robotics already blamed low prices on DJI when drone hardware had to be withdrawn from the market to focus on the development of software for unmanned aircraft and their navigation.