Fitbit lays off 110 employees due to a slowdown in sales
- Fitbit laid off 110 employees following lower-than-expected sales growth last quarter, reports Engadget. The company expected earnings of $725 million instead of the $580 in actual revenue.
- Fitbit’s CEO James Park said he’s confident that the slower sales aren’t a reflection of the company’s wearables, which include smartwatches and trackers. He cited competition from big tech firms like Samsung and Apple as possible contributors to the slowdown in sales.
- Engadget says the slowdown might be a sign that sales of wearables have reached their maximum in the marketplace.
Fitbit acquired tech firms Coin, Pebble and Vector in the last eight months. After these buyouts, the company likely needed to make staff adjustments to keep operating.
Engadget says Fitbit plans to make a comeback by personalizing customer service, updating existing products and possible introducing new products. Fitbit is one of the best-known brands in wellness wearables, but its iron grip on the industry may be slackening. Expect to see cheaper, more competitive solutions when it comes to fitness trackers for employees emerge, especially as Apple and Samsung continue to expand competition.