Fitbit lowers guidance; announces 110 employees will be laid off

Shares of Fitbit Inc. plunged after the corporate minimize its fourth-quarter steering and introduced plans to put off greater than 100 employees.

Following “weaker-than-expected” vacation gross sales, Fitbit mentioned it expects an adjusted loss per share of 51 cents to 56 cents within the quarter, after beforehand saying steering for a revenue of 14 cents to 18 cents a share. Fitbit reviews fourth-quarter earnings on Feb. 27.

The corporate mentioned it plans to put off about 110 staff, or 6% of its workforce, as a part of a restructuring of the enterprise.

“To handle this discount in development and what we consider is a short lived slowdown and transition interval, we’re taking clear steps to scale back working prices,” James Park, chief government of Fitbit, mentioned in a information launch.

Fitbit now expects income of $572 million to $580 million for the fourth quarter, in contrast with earlier steering of $725 million to $750 million. It expects to report gross sales of 6.5 million units. General, it expects the outcomes to be hit by a “materially increased” non-GAAP efficient tax price.