Fitbit could layoff up to 10% of its head count
The hope for Fitbit is that it can produce a smartwatch that will work with third party apps. That would allow the manufacturer to compete with companies like Apple, Samsung and LG. While the company does have some devices that have many of the same functions as a smartwatch, like the Fitbit Blaze, the latter does not work with third party apps.
Fitbit purchased smartwatch company Pebble last month in a deal valued at approximately $40 million. With the purchase, Fitbit gets Pebble's operating system and other IP. The company also decided to hire several Pebble engineers and testers. Others will receive severance pay.
It isn't clear whether any of the 80 to 160 Fitbit employees receiving a pink slip include some of the workers from Pebble being let go. Fitbit could save as much as $200 million in annual costs if it does layoff personnel.
source: TheInformation (subscription req'd) via MobileSyrup