Fitbit Tipped To Cut Staff, Slip In Earnings Report
As originally reported by The Information, fitness band giant Fitbit is said to be cutting between 5% and 10% of its staff ahead of what are said to be disappointing Q4 results.
Sources told The Information that the company’s latest earnings report results will mark the second consecutive quarter in which Fitbit missed its earnings guidance as a result of a slowdown and increased competition in the wearables market.
The layoffs are expected to be confirmed by Fitbit during this week’s earnings call.
Between 80 and 160 employees will be potentially impacted by the restructuring, which comes amid Fitbit’s broader pivot away from hardware and towards software.
Reports say this restructuring will save the company $200 million overheads.
Given the voracious spree of acquisitions Fitbit have been undertaking in recent months, this move could be seen as a price the company is paying to accommodate the influx of new staff or an attempt to stabilise its operating costs in the face of market trends.
Fitbit has yet to comment. The company’s full earnings report is expected to go out later this week.