Fitbit to trim 6% workforce after poor Q4 performance

Wearable fitness device maker Fitbit 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 USD 6.20 in early trading on Monday.

The company said it now expects fourth-quarter revenue between USD 572 million and USD 580 million from its previous forecast of USD 725 million-USD 750 million.

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.

Analysts on average were expecting a profit of 17 cents per share and revenue of USD 736.36 million, according to Thomson Reuters I/B/E/S.

Fitbit said it estimates sales of 6.5 million devices in the quarter compared with 8.2 million devices a year earlier.

The company also forecast 2017 revenue of USD 1.5 billion-USD 1.7 billion, widely missing analysts' average estimate of USD 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 October 1, said it expects to record about USD 4 million in restructuring charges in the first quarter of 2017.