Fitbit to layoff 6% of employees following poor Q4 results

This comes a few weeks after the company announced its acquisition of Pebble and Vector

Published Date
31 - Jan - 2017
| Last Updated
31 - Jan - 2017
 
Fitbit to layoff 6% of employees following poor Q4 results

Fitbit has announced that it plans to lay off about 110 of its employees, which makes about 6% of its global workforce. This was announced in the company's, preliminary financial results for Q4 2016, in which it has lowered its expectations. Fitbit initially expected to earn a revenue between $725 million and $750 million, but now expects to earn between $572 million and $580 million. 

James Park, Fitbit co-founder and CEO said in a statement, ““Fourth quarter results are expected to be below our prior guidance range; however, we are confident this performance is not reflective of the value of our brand, market-leading platform, and company’s long-term potential. While we have experienced softer-than-expected holiday demand for trackers in our most mature markets, especially during Black Friday, we have continued to grow rapidly in select markets like EMEA, where revenue grew 58% during the fourth quarter. To address this reduction in growth and what we believe is a temporary slowdown and transition period, we are taking clear steps to reduce operating costs.”

Fitbit also seems to be in the middle of an acquisition spree. The company acquired Pebble last month, and earlier this year, they acquired Vector. There are also reports which suggest that the company may have tried to purchase Jawbone as well.

Shrey PachecoShrey Pacheco

Writer, gamer, and hater of public transport.