Fitbit Expected to Announce Layoffs in Fourth Quarter Results

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Fitbit is set to announce cuts of between 5 to 10 percent to its workforce later on Monday amid lower-than-expected fourth quarter results.

According to The Information, the job cuts are expected to affect between 80 and 160 people across multiple departments and save the company $200 million in costs. The Q4 results will be the second consecutive quarter in which Fitbit has missed its earnings guidance.

fitbit charge and flex
Fitbit is expected to blame the slowdown on a sluggish market, despite Market research data from September that showed a split in the wearables market, with Fitbit's "basic wearables" gaining popularity, and "smart wearables" like the Apple Watch seeing stalled growth.

Despite a portion of the market stalling out, the overall wearable device market was said to have grown 26.1 percent in comparison to the year ago quarter, with Fitbit the leading brand. Additionally, Fitbit's stock rose 7.4 percent on December 27, after reports that its app had become one of the most downloaded in the App Store on Christmas Day.

Fitbit's recent acquisition of Pebble and Vector Watch – along with its rumored interest in Jawbone – suggested the company was increasingly aligning itself with software rather than relying solely on hardware sales, and the reported layoffs could be another part of that plan. Indeed, one source told The Information that Fitbit is aiming to develop its own App Store and open up devices to third-party developers.

Whether Fitbit is planning to launch a more traditional smartwatch with a dedicated app store as part of those plans remains unclear.

Tag: Fitbit

Top Rated Comments

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48 months ago
I hate see poeple lose jobs.
Score: 6 Votes (Like | Disagree)
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48 months ago

A little surprising since they're so popular, the smart watch sector is not doing as well as I think people thought it would

My crude analysis would be the same as GoPro: People who want one already have one. People who don't yet have one will never buy one.

Their futures lies in other fields related to the products they're best known for (ie video and wearables), but neither will be the next Apple based on a single product.
Score: 5 Votes (Like | Disagree)
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48 months ago
A little surprising since they're so popular, the smart watch sector is not doing as well as I think people thought it would
Score: 3 Votes (Like | Disagree)
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48 months ago
Don't all shout at me but everyone who I know has a Fitbit ... how are they making a loss!
Score: 2 Votes (Like | Disagree)
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48 months ago
How does ~160 employees equate to 200 million in cost savings? 160 employees at 100k each plus another 100k of employer "costs" is 32m. How do you get to 200m?
Score: 2 Votes (Like | Disagree)
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48 months ago

That's more of a fad, where as the fitbit provides more benefits I think

Trouble with all fitness trackers is that they're all inaccurate, some very. I fail to see the point of them when they're guesstimates.
Score: 1 Votes (Like | Disagree)

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