From CNET: Fitbit announced Monday that it will be conducting a "reduction in force, that will impact approximately 110 employees." That's about 6 percent of the company's workforce.
The decision comes after a disappointing fourth quarter for the wearables giant. Fitbit's 2016 Q4 revenue expectations were as high as $750 million, but it now estimates an earned range between $572 million and $580 million.
In December Fitbit acquired smartwatch startup Pebble, as consumer demand shifts from the simple fitness trackers Fitbit is famous for to more complicated smartwatches such as the Apple Watch.
CEO James Park said the missed goals are not necessarily indicative of a larger weakness in the company. "Fourth quarter results are expected to be below our prior guidance range," he said in a statement. "However, we are confident this performance is not reflective of the value of our brand, market-leading platform, and company's long-term potential."
According to Park, despite lower-than-expected performance during the holiday season -- and particularly on Black Friday -- Fitbit saw large growth in Europe, the Middle East and Africa, where revenue grew by 58 percent in the quarter.
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