Parrot is one of the many companies that’s selling drones but even though sales of these products are on the rise, its drone division appears to be performing not as well as the company would want it to. The company sent out a press release today confirming that it failed to meet its Q4 2016 target by 15 percent as it brought in 85 million euro against a target of 100 million euro. It’s now looking to downsize the division.
“The commercial performance for consumer drones in the fourth quarter was achieved based on margins that would be insufficient to deliver profitable growth for this business over the medium and long term,” Parrot details in its press release, adding that the company has prioritized a strategy to rebalance its finances.
The strategy revolves around restructuring the entire drone division. Parrot is planning to downsize by reducing 290 jobs out of a total of 840. This means that Parrot is going to lay off over a third of the entire drone division.
It’s also going to try and streamline its product offerings based on the commercial drone division which exhibited decent growth in the previous quarter. It remains to be seen if this move is going to pay off in the long run.