Parrot lays off 35 percent of its drone team

French firm Parrot has had a tough yr and missed its gross sales expectations. That’s why the corporate will lay off 290 staff who have been working on drones. In complete, Parrot at present has 840 staff on the drone team and greater than a thousand staff in complete.

Whereas the corporate isn’t simply promoting drones, it represents an excellent chunk of the enterprise. However it appears like different corporations, similar to DJI, are doing higher on this market. Parrot anticipated to report $one hundred and five.9 million in gross sales for 2016. It reported $90 million as an alternative (€85 million vs. €100 million anticipated).

Regardless that the corporate continues to be promoting fairly a number of drones, Parrot says that it doesn’t generate wholesome margins. So right here’s the new plan: focusing on business drones.

Once I interviewed Parrot founder and CEO Henri Seydoux final yr, he was keen about new use instances in terms of business drones. The corporate has made a number of acquisitions to develop into a key participant on this area. SenseFly, Airinov, MicaSense and Pix4D at the moment are all owned by Parrot.

You should use drones for agriculture, inspection, deliveries, and so on. Tech corporations are in all probability simply scratching the floor with these new use instances. Proper now, 18.3 percent of Parrot’s drone income comes from business drone. Whereas it’s nonetheless a nascent enterprise, it’s rising.

For 2017, Parrot expects to develop by 10 percent for each drone and automotive actions. Parrot has been quiet throughout CES final week. There wasn’t any huge splashy product announcement. It’s clear that the corporate had different issues to do.

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