Fitbit tumbles after profit warning
Fitbit announces job cuts as its fitness trackers lose their allure
New York — Fitbit plans to eliminate about 110 jobs, or 6% of its workforce, and says fourth-quarter results will not meet analysts’ estimates amid declining demand for its fitness trackers. Fitbit expected to report that it sold 6.5-million devices in the quarter ended December 31, with revenue of $572m to $580m, the company said on Monday. Analysts were expecting $736.4m, on average. Fitbit forecasts revenue in 2017 of $1.5bn to $1.7bn. Analysts had estimated $2.38bn. Official results are due to be released February 22. The shares fell the most in almost three months, tumbling as much as 14% to $6.17 in New York. That is the lowest intraday price ever for the stock, which has dropped more than 50% in the past 12 months. Fitbit has struggled to maintain momentum for its watches, which were initially popular as a way to track steps and encourage exercise, but then quickly relegated to gadget status. At the same time, they were facing competition from Apple’s watch and cheaper Chines...
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