Fitbit to cut workforce by 6% as revenue disappoints

Fitbit will lay off 6 percent of its workforce, or a little more than 100 employees, the San Francisco fitness device maker announced Monday.

The reductions were announced amid disappointing quarterly and annual revenue results, as well as lower-than-expected revenue forecasts for 2017.

There is also the perception that technological innovation within their devices, the pace of that innovation, is slowing.

The company announced 2017 revenue guidance of $1.5 billion to $1.7 billion — less than the $2.4 billion analysts projected.

“While we have experienced softer-than-expected holiday demand for trackers in our most mature markets, especially during Black Friday, we have continued to grow rapidly in select markets,” Park said.

To address this reduction in growth and what we believe is a temporary slowdown and transition period, we are taking clear steps to reduce operating costs.