French technology company Parrot (PARRO.PA) said on Monday it would cut around 290 jobs worldwide, as the company failed to meet its fourth quarter revenue target due to disappointing results in its core drones business.
The company, which has been hit by pricing pressure in the consumer drones market, announced revenue of 85 million euros (£74 million) for the fourth quarter of 2016, below the target of 100 million it set in November.
"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 company said in a statement.
The reorganisation of the company's drones business will lead to 150 redundancies in France. The restructuring will result in a cost of around 45 million euros, including 20 million euros of asset writedowns, the company said.
Parrot, which also produces hands-free communication and entertainment kits for cars, saw its shares jump 10 percent in December after it announced talks with Faurecia (EPED.PA) which would allow the automotive equipment supplier to take a 20 percent stake in Parrot Automotive, based on an enterprise value of 100 million euros.
The company said on Monday that bearing in mind the prospect of Faurecia investing in its automotive unit it is still in a "healthy financial position," and targets growth of around 10 percent for its drones and automotive businesses in 2017.
(Reporting by Alan Charlish in Gdynia; Editing by Adrian Croft)