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.
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 $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 $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.
(Reporting by Rishika Sadam and Aishwarya Venugopal in Bengaluru; Editing by Martina D’Couto)