Reuters reports that about a third of North American employees at mainland Chinese drone giant DJI have left the company amid tensions between the U.S. and China and internal company friction, potentially undermining DJI’s dominance of the global drone market.
DJI has built a successful U.S. business over the past decade, nearly dominating the local market. Now, however, Reuters, after interviewing more than 20 current and former DJI employees, notes that about a third of the more than 200 employees at DJI’s North American operations have been laid off or resigned in recent months over the last year.
DJI’s internal employees and competitors agree that the company will still not lose its dominant position in the U.S. and global non-military drone market in the near future because of DJI’s brand clout, technical capabilities, manufacturing strength and sales team.
However, the departure of several key executives adds to the problems facing DJI at a Time when the U.S. government is imposing restrictions on land-based companies and could weaken DJI’s leadership position, people familiar with the matter said. The U.S. Department of Commerce added DJI to its “entity list” last December, prohibiting it from purchasing or using U.S. technology or components.
Since its founding in 2006, DJI has become one of the symbols of innovation in mainland China. The company does not release sales figures, but consultant DroneAnalyst estimates that DJI holds nearly 90 percent of the consumer market and more than 70 percent of the industrial market in North America.
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