The company plans to cut six percent of its global workforce because of fourth-quarter results going way below expectations.
Amid slowdown in the wearables market, even the fittest player may have to take some tight measures. Fitbit plans to cut six percent of its global workforce as it sees lower-than-expected fourth-quarter results.
The job cuts are expected to affect between 80 and 160 people across multiple departments. This will be the second consecutive quarter in which Fitbit missed its earnings guidance as a result of a slowdown in the wearables market.
The company will go into greater detail on the earnings call, but a preliminary statement issued this morning detailed the loss of 110 jobs, as part of a “reorganisation of its business” designed to “create a more focussed and efficient operating model.”
The news follows what has been a disappointing several months for the wearables space, in general, impacting even Fitbit, the dominant player. While rivals like Jawbone grapple with uncertainty, and the future of the smartwatch space looks downright dismal, Fitbit has been making acquisitions. Once promising smartwatch pioneer, Pebble, which had its own share of challenges as the year drew to a close, is one of its acquisitions.
The financials detail 6.5 million devices sold for the fourth quarter of last year, with quarterly revenue and annual revenue growth both falling below the company’s guidance range.