California-based GoPro Inc (www.gopro.com) has forecast a disappointing first quarter this year, reflecting slow demand for its action cameras and the delayed launch of a new drone.

Revenues will be $190-210 million, instead of analysts’ expected figure of $267.6 million. In the fourth quarter, sales rose by 24% to $540.6 million, falling short of analysts’ expected figure of $573.3 million.

GoPro was forced to recall its Karma drone in November — less than two months after its debut — due to battery problems that led some of them to lose power in mid-flight.

CEO Nick Woodman had been hoping that Karma and the new Hero5 cameras would help to revive demand and the company’s flagging share price. The Karma went back on sale last week with limited initial shipments, but the company says that it faces intense competition from more-experienced manufacturers like China’s SZ DJI.

GoPro says that it is “transitioning to focus on more realistic visions”; it will cut about 15% of its workforce this year and shut down its entertainment division to reduce costs.

There have also been some management changes in the past few months, including the departure of Tony Bates, who joined GoPro as president in 2014.