Parrot To Idle About 35% Of Workforce In Drone Division | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Recent Daily Episodes

Episode Date

Airborne Unlimited-
Monday

Airborne-Unmanned w/AUVSI-
Tuesday

Airborne Unlimited-
Wednesday

AMA Drone Report-
Thursday

Airborne Unlimited-
Friday

Airborne On ANN

Airborne 11.20.17

Airborne-Unmanned 11.21.17

Airborne 11.22.17

AMA Drone Report 11.16.17

Airborne 11.17.17

Airborne-YouTube

Airborne 11.20.17

Airborne-Unmanned 11.21.17

Airborne 11.22.17

AMA Drone Report 11.16.17

Airborne 11.17.17

Thu, Jan 12, 2017

Parrot To Idle About 35% Of Workforce In Drone Division

Nearly 300 People To Be Cut From Consumer And Commercial Drone Production

The fourth quarter financial report from Parrot, makers of the BeBop drone, was pretty grim. The company reported that at the end of the fourth quarter of 2016, Parrot is reporting revenues of around 85 million euros (approx. $90 million), coming in below its target of around 100 million euros (approx. $105.5 million) announced at the end of November.

Drones generated revenues of around 60 million euros (approx. $63.3 million), with approximately 11 million euros (approx. $11.6 million) for commercial drones and 49 million euros (approx. $51.7 million) for consumer drones.

The commercial performance for consumer drones in the fourth quarter was achieved based on margins that would be insufficient to deliver profitable growth for this business over the medium and long term.

The Group has set itself a priority to rapidly meet this challenge with a strategy to rebalance its finances.

Parrot has taken on board the changes in market for consumer drones and considers that the management of its development in this segment will involve an adaptation of its offer and a cost reduction phase. The action plan mapped out aims to adapt the level of resources deployed in line with the level of business achieved in 2016, focusing on four key areas:

  • Focusing the capacity for innovation on a reduced number of products with a commitment to taking a significant technological step forward;
  • Redeploying the product offering, capitalizing in particular on the expertise built up in commercial drones;
  • Realigning sales and marketing resources around the most profitable distribution channels and most promising markets;
  • Adjusting the support teams to the level of business.

Consulting with its employee representatives, and following the legal framework applicable, Parrot is therefore envisaging a plan that could reduce its workforce by around 290 people out of a total of 840 staff currently working in the Group’s Drone activities. These reductions would concern employees both in France and internationally. In France, this proposal would result in around 150 positions being made redundant, taking into account in particular possible redeployments in the Group's other activities.

The overall cost of this transition is estimated at around 45 million euros (approx. $47.5 million), including 20 million euros (approx. $21.1 million) of asset writedowns, which will be provided for in the accounts for 2016.

(Source: Parrot news release)

FMI: https://corporate.parrot.com

Advertisement

More News

Airborne 11.22.17: AOPA Plays Icon Apologist, Lancair Mako, Mooney Ovation Ultra

Also: Airbus A380 Deal, Acting PM Belize In A/C Accident, Hartzell Propeller, Crop Duster Shooting ANN’s senior editorial staff was stunned to read a recent article by the AO>[...]

Airborne 11.22.17: AOPA Plays Icon Apologist, Lancair Mako, Mooney Ovation Ultra

Also: Airbus A380 Deal, Acting PM Belize In A/C Accident, Hartzell Propeller, Crop Duster Shooting ANN’s senior editorial staff was stunned to read a recent article by the AO>[...]

Aero-News: Quote of the Day (11.23.17)

"We take great pride in our Goodyear Blimp crews teaming up with the U.S. Marine Corps Reserve to support Toys for Tots." Source: Paul Fitzhenry, senior vice president, Global Comm>[...]

AMA Drone Report 11.16.17: Drone Registration, Drone Journalists Jailed

Also: Terror Advisory, DRL Sim, SureFly Octocopter, Space Needle Drone Pilot, FAI-ASFC World Fly-In Expo A bill that includes a return to civilian drone registration has been inclu>[...]

ANN Wishes Our Readers, Listeners And Viewers A VERY Happy Thanksgiving Holiday

Yes... We Will Be On A Holiday Schedule For The Rest Of Week As the Aero-News staff observes the US holiday of Thanksgiving on Thursday, we wanted to let our readers know that ANN >[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2017 Web Development & Design by Pauli Systems, LC