Despite being the leader of the wearable market in Q3 2016, Fitbit seems to have run into some headwinds last quarter which prompted it to take some drastic measures.
The Information reports that Fitbit is going to reveal disappointing fourth-quarter results soon. This forced it to consider cutting its workforce between 5 to 10%. Currently, it is said to have a 1,600-strong workforce which means that about 80 to 160 employees may be asked to leave. The layoff could potentially save US$200 million in costs.
Fitbit went on an acquisition spree last year. In May 2016, it acquired mobile payment firm Coin with plans to launch a mobile payment solution. In recent weeks, it also purchased Pebble and European smartwatch startup Vector. It even attempted to buy out rival Jawbone, but negotiations failed. Fitbit could be expanding beyond fitness trackers to find new growth drivers.
Source: The Information via SlashGear
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