Like Action Cameras, the Drone market is smaller than these companies think it is. After GoPro's success, how many other companies like Polaroid and Sony were trying their hand at action cameras, only to fall by the wayside because it wasn't their core business and they were late to the party? GoPro is on the other end with Karma, they are late to the party and don't have a compelling enough product to differentiate themselves from DJI, despite their dominance in the camera market. The meteoric rise of action cameras made lots of companies think drones would be the same and it hasn't been, especially with the crackdown of the FAA on regulations. Not surprising that companies over-projected sales totals, built up huge staffs and are now having to cut back to size.
I think the drone market itself hasn't really decided what it really wants to be yet. Action cameras have found their niche with the extreme sports crowd, and not much else. Now thankfully they're being used in live sports coverage (helmet cams for refs and umps, etc) so that may be their other niche market. Drones may end up being more marketable in the enterprise industry like where 3DR is headed: site mapping, surveillance, search and rescue, etc. I don't see a widespread, sustainable market for just everyday consumers for drones like I do for those other methods. They are proving to be extremely valuable for those other uses; lifeguards in CA are using them to protect beaches from sharks, search and rescue can send them into an earthquake zone to look for victims, and same for lost hikers in the woods where it's too costly to use helicopters for a sustained time period.