Fitbit Cutting 6% of Workforce as Results Miss Estimates
- Shares tumble as much as 13 percent to lowest price ever
- Fitness tracker has struggled to maintain momentum for gadget
Fitbit Cutting 6% of Workforce as Shares Tumble
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Fitbit Inc. will eliminate about 110 jobs, or 6 percent of its workforce, and said fourth-quarter results won’t meet analysts’ estimates amid declining demand for its fitness trackers.
Fitbit expects to report that it sold 6.5 million devices in the quarter ended Dec. 31 2016, with revenue of $572 million to $580 million, the company said in a statement Monday. Analysts were expecting $736.4 million, on average. Fitbit forecasts revenue in 2017 of $1.5 billion to $1.7 billion. Analysts had estimated $2.38 billion. Official results are due to be released Feb. 22.