Fitbit may lay off up to 10pc of workforce

Fitbit is set to report its fourth quarter earnings today but apparently, there isn’t much to cheer about the same. The wearable technology startup will not only be disclosing revenue below expectations but could also be laying off up to 10 percent of its workforce, according to The Information.

Though as of now, there isn’t any confirmation regarding the particular department or sub-division that will bear the brunt but reportedly between 80 and 160 people could be impacted by the decision. This action will also save Fitbit around $200 million in costs.

Fitness bands are slowly losing its charm over the market and this could be the reason behind both the lower earnings and layoffs. Citing a source the report said that Fitbit is planning an app store, opening up its devices to third-party developers and Pebble could play a big part in that move.

In this scenario, the layoffs could be seen as part of a restructuring to not just save money, but also to re-align the focus away from just a hardware company and into a dedicated software one.

Fitbit recently acquired Pebble that is perceived by many as company’s new plan of action to move past its current wearable selection into more diverse holdings.