Fitbit Delves Into New Market Following Catastrophic Shares Plunge
Jan 31, 2017 10:29 AM EST
Fitbit is now considering other options after taking a blow in stock shares that costed the jobs of over a hundred employees.
The American tech company decided to cut expense costs by cutting down on their work force. This was due to the company's recent stock plummet that they're yet to fully recover from.
According to CNBC, this results in the company having to release about 110 employees. This will affect multiple departments within the company on a global scale.
In an attempt to recover from the loss, Fitbit CEO James Park is considering expanding and focusing the product line to the smartwatch market. Park explains that this move hopes to "diversify" their revenue.
Park also mentions that the wearable tech market is "evolving." This gives them opportunities to adapt and focus on markets such as smartwatches, which he hopes to capitalize on.
Fitbit hopes to recover from its stock shares which went down by as much as 18 percent. Although it's been reported that the company recovered some of its losses but still not by much.
According to Nasdaq, the tech company lost a massive 60 percent of their value. The source also mentioned that Fitbit plans to recover from the loss by acquiring their competitors.
This includes acquiring smartwatch companies such as Vector and Pebble. The same source also mentions that Fitbit is in talks with fellow fitness-tracking wearables company Jawbone.
Fitbit's value depreciation signifies a major blow to the company's sales chart. The company is expecting to miss their targeted sales earnings which they aimed to be somewhere between $725 million to $750 million. Now, the current expected sales dropped to somewhere between the $572 million to $580 million mark.
However, this doesn't entirely mar the achievements that the company garnered over the years. Fitbit was ranked number 37 out of 50 as the most innovative companies of 2016. The tech company also received multiple accolades including awards from CES and TechCrunch.