Parrot cuts 290 drone division employees
French drone maker Parrot announced yesterday that it is laying off 290 employees, more than a third of employees working on drone-related projects, after missing its fourth quarter sales target by 15%.
Parrot says the company will concentrate on the most profitable areas. Parrot mentions that the consumer space has low margins and that this is the main reason for the layoff. Parrot’s main competitor, DJI, has dominated the consumer drone space by cutting into its own profit margins. DJI manages to do so because it owns the manufacturing facilities in Shenzhen.
Another company, 3D Robotics, blamed DJI’s pricing when it stopped making hardware and focused on making software for drones and navigation.