The wearable market exploded a few years ago but has begun to die down as new devices fail to innovate and consumers are happy with their previous-generation devices. Fitbit just released their 4th quarter earnings, and things haven't gone as well as they had hoped.
Reports show the company only earned $580M from sales of 6.5M devices during the three month period falling short of their $725-$750M expectations. Fearful of the market hitting its saturation point, Fitbit is taking appropriate measures to cut costs including laying off 110 employees, about 6% of its total workforce.
While the move is unfortunate for the affected workers, the company must remain financial conscious after their recent investments and acquisitions like Pebble, Coin and Vector have eaten up a good portion of working capital.
As a graduate of the University of Massachusetts and our Managing Editor, Colt loves testing out the newest tech products/services. His goal is to help better educate other consumers to ensure the most satisfying purchases decisions on consumer electronics and services. When he is not working on creating new content, Colt enjoys spending time with his two Australian Shepherds, Mia and Zoey.