Wearable fitness device maker Fitbit Inc estimated fourth-quarter revenue below its own forecast and said it would cut about 6 percent of its workforce after a weaker-than-expected holiday quarter. Fitbit’s shares fell nearly 14 percent to $6.20 in early trading on Monday.
The company said it now expects fourth-quarter revenue between $572 million and $580 million from its previous forecast of $725 million-$750 million, reports Reuters.
Fitbit also said it expects an adjusted net loss of 51-56 cents per share in the quarter, compared with a previously announced profit of 14-18 cents. Fitbit said it estimates sales of 6.5 million devices in the quarter compared with 8.2 million devices a year earlier.
The ticker symbol for Fitbit is displayed at the post where it is traded on the floor of the New York Stock Exchange (NYSE)
The company also forecast 2017 revenue of $1.5 billion-$1.7 billion, widely missing analysts’ average estimate of $2.38 billion. The company expects a challenging year-over-year comparison in the first half of 2017.
Fitbit, which had about 1,627 employees as of Oct. 1., said it expects to record about $4 million in restructuring charges in the first quarter of 2017.