One-third of Parrot's drone-making employees to be laid off
Parrot’s making some business adjustments for the new year ahead. The French drone-making company just announced their Q4 2016 preliminary earnings report with details on employee layoffs for their drone division.
The French drone-making company churned €85 million (~RM403 million) in revenue by the end of Q4 2016, but it was short of their goal of €100 million (~RM474 million). The report goes on to say that the consumer drone earnings were not enough to turn in enough growth for the long term.
As such, Parrot will lay off 290 out of 840 Group Drone employees, with 150 of those jobs coming from Parrot offices in France. This transition will cost Parrot €45 million (~RM213 million).
Besides the layoffs, Parrot is also aiming to boost their commercial drone businesses (drones for mapping, monitoring, agriculture, and inspection). Parrot has €200 million in net cash at the end of December 2016, while expecting a 10 percent growth in their drone and OEM automotive business for 2017.
Currently, DJI has a strong presence in the global drone market, with 70 percent market share and an expected 2016 revenue of 10 billion yuan (~RM6.4 billion). Other drone makers like Parrot get a smaller market share.
The preliminary earnings report has not yet been audited and consolidated with Parrot’s annual results. A verified report will be published on March 1, 2017.