Parrot moves drone production, sourcing from China to South Korea
European drone group Parrot has made some major announcements while reporting its first-half earnings. As the company strives to reduce its cash consumption amid tepid drone sales, Parrot says it will stop production and component sourcing in China, and reduce its workforce by around 20%.
Parrot, which is focusing its sales efforts on government institutions and armed forces, explains in its earnings report that this client segment is part of a slow-moving administrative structure, faced with an economic slowdown. As a result, the company is capitalizing on three “complementary strategic pillars” to adapt to long sales cycles and reduce its cash requirements. Here’s what Parrot’s plan looks like:
Saying no to China: Parrot, which only makes a small number of drones outside of China for US government and military clients, says it will stop all production and component sourcing in China. This, the company says, is being done to ensure a…