Troubled action camera maker GoPro Inc. is exiting the drone market as part of a broader restructure of the company as it struggles to grow sales in a highly competitive market.

The news of GoPro’s exit from drones came via its fourth-quarter financial report out today. It noted that while the company saw increased sales of $340 million in the quarter, up from $330 million the previous quarter, that figure should have been far higher given it was the holiday quarter.

GoPro struggled with what appeared to be mismanagement, as the company admitted that it had its HERO5 Black camera overpriced until Dec. 10. Meanwhile, its Karma drone, claimed to have reached second position in the market, was described as facing “margin challenges in an extremely competitive aerial market,” which is a roundabout way of saying that it costs too much to make.

Announced in 2014, the Karma drone was pitched as the then-successful GoPro taking on drone industry heavyweights such as DJI, Parrot and 3D Robotics with a midrange product that would be priced between $500 and $1,000. At the time, many drones on the market used GoPro cameras for their video capture, so making drones themselves seemed like a logical step to take.

The Karma drone launched in October 2016 to reasonable fanfare that didn’t last a month after the drones started to fall from the sky, literally, resulting in a recall the next month. The drones were relaunched in February 2017, but at the same prices as before – a list price of $799 with no camera or $1,099 with a Hero 5 Black. Ultimately, it was this relatively high price, seemingly thanks to manufacturing costs that gave little opportunity for GoPro to cut prices, that led to the Karma’s downfall.

The Karma drone wasn’t the only thing being cut from GoPro today with the company. It also said it would lay off at least 250 employees.

As a result of the announcements, GoPro’s share price dropped nearly 13 percent in trading today, to $6.56. For some idea on just how far the company has fallen, the day it announced the Karma drone it was trading at $79.05.

Image: GoPro