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Parrot Cuts Jobs After Drone Discounts at Christmas Hurt Profits

  • Eliminating 290 posts and restructuring consumer drone unit
  • Aims at rekindling sales growth, reaching break-even in 2017
Parrot SA drones are demonstrated during CES 2016.
Photographer: Patrick T. Fallon/Bloomberg

Parrot SA, the maker of toy drones you can fly from your phone, is cutting a third of its staff after lowering prices at Christmas to lure consumers from rivals including market leader SZ DJI Technology Co.

Sales were short of what the company had forecast in the fourth quarter even as profitability fell in consumer drones, to a level unsustainable in the long-run, Parrot said Monday in a statement. The revamp, which will cost 45 million euros ($47.7 million), including 20 million euros in asset writedowns in 2016, is aimed at rekindling sales growth to 10 percent as well as reaching break-even at an operating level in 2017. The company will cut 290 jobs of a 840 total.