In the News
Retrenchment at Fitbit
![](https://tutor2u-net.imgix.net/user-photos/host-jimriley.png?auto=compress%2Cformat&crop=focalpoint&fit=crop&fp-x=0.5&fp-y=0.5&h=100&q=80&w=100)
31st January 2017
Fitbit, the global market leader in the fitness wearables industry, is looking to reduce operating costs by $200m a year. As a result it is to reduce the size of its global workforce by 6%.
What is going wrong at Fitbit?
One pressing problem is how to manage investor expectations of revenues growth. When Fitbit's shares were floated in the US stock market in June 2015 investors flocked to buy shares. Since then Fitbit's share price has fallen from a high of $35 to around $6 now as the company has failed to meet revenue forecasts released to investment analysts.
Why are revenues not growing as fast as expected?
Part of the reason might be a weakening of demand growth in the overall market.
Another is the increasingly intense competition Fitbit is facing from established and new entrants into the wearable market, including Apple, Garmin, TomTom and Samsung.
Fitbit has responded by acquiring a close competitor - Pebble - and launching a smartwatch (the Fitbit Blaze).
![](https://tutor2u-net.imgix.net/subjects/business/blogimages/blog-bus-fitbit-shareprice.png?auto=compress%2Cformat&fit=clip&q=80&w=800)
![](https://tutor2u-net.imgix.net/subjects/business/blogimages/blog-bus-wearables-market.png?auto=compress%2Cformat&fit=clip&q=80&w=800)
You might also like
![](https://tutor2u-net.imgix.net/user-photos/host-jimriley.png?auto=compress%2Cformat&crop=focalpoint&fit=crop&fp-x=0.5&fp-y=0.5&h=100&q=80&w=100)
Strategy: Retrenchment for the Co-op Group to Reduce Gearing
4th August 2014
![](https://tutor2u-net.imgix.net/user-photos/host-jimriley.png?auto=compress%2Cformat&crop=focalpoint&fit=crop&fp-x=0.5&fp-y=0.5&h=100&q=80&w=100)
ResearchBuster: Retrenchment
26th September 2012
Retrenchment
Topic Videos
![](https://tutor2u-net.imgix.net/user-photos/graham.jpg?auto=compress%2Cformat&crop=focalpoint&fit=crop&fp-x=0.5&fp-y=0.5&h=100&q=80&w=100)
Burberry - Trench Coat Retrenchment
19th May 2016
Retrenchment at Ralph Lauren as 1,000 Jobs Cut
10th June 2016
![](https://tutor2u-net.imgix.net/user-photos/host-jimriley.png?auto=compress%2Cformat&crop=focalpoint&fit=crop&fp-x=0.5&fp-y=0.5&h=100&q=80&w=100)
Retrenchment in Action | Calm and Peloton
14th August 2022