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Drone Companies Cut Jobs! – Vast Investments ≠ Success

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The end of 2016 was a very interesting time from the drone industry point of view. So much stuff has happened is such a short period of time. Here are some highlights of last quarter of 2016:

Those are only the highlights that happened but there are also some events that didn’t attract too much attention. The news of drone companies cut jobs were tucked away and did not draw attention. But let’s go back and walk through it again.

Mr. Trump will tell you what’s happened in the GoPro, Ehang, and Zero Tech offices that time:


GoPro

After the well-known action camera manufacturer GoPro had an epic fail with their Karma drone.  They also lost a lot of money on the stock. To save some money, Go Pro announced the cut of 200 positions which amounted to 15% of its staff. No doubt, it was a rough November for Go Pro family and friends. 

Action Camera


Ehang

This manufacturer had raised $42M in August 2015 and released their Ghost 2.0 drone. The Ghost 2.0 was not a successful product (you might not even heard about it). They even released an Autonomous Aerial Vehicle that could carry passengers from point A to point B in the sky.

Ehang Ghost

According to the Chinese media Xtecher, Ehang has cut 70 positions in December. Compared to the GoPro’s 200 it’s not as much. But for the company that has 101-250 employees, this is a huge cut. What is the reason behind it? Well, futuristic Autonomous Aerial Vehicles will not get to mass production any time soon due to a variety of R&D, safety, and legal complications.

Drone companies cut jobs


Zero Tech

Zero Tech might not sound familiar to you. However, if I say Xiro or Dobby, you will instantly understand what company I am talking about. Selfie drone Dobby has been the product of the year for this company. But an unforeseen impracticality and low demand of selfie drones equaled low sales which ultimately didn’t go as well as Zero Tech had expected. Add any other unforeseen occurrences that only the management of Zero Tech would know about and the end result was the loss of 66 jobs in 1 day.

dobby drone

Even though few drone companies cut jobs, other, new manufacturers come to the market which will keep the drone industry developing.  Maybe CES 2017 will bring us something new and exciting…

Thank you for reading!

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