Wearable into winter: wearable device maker Jawbone announces layoffs of 15%

According to the Techcrunch website, wearables company Jawbone cut 60 employees worldwide, equivalent to 15% of the total number of employees, Pittsburgh, California Sunnyvale is the hardest hit by layoffs. In addition, the company will also close the New York office. A Jawbone spokesperson confirmed the news, saying the move was part of the company's "reorganization."

The spokesperson said that Jawbone's success in the past 15 years has been due to the company's ability to grow and grow dynamically in a rapidly expanding market. In order to make the company more streamlined and more successful, Jawbone made a difficult restructuring decision, which affected some employees.

In March of this year, Jawbone raised $300 million. But since then Bloomberg News reported that the part of BlackRock's investment is actually a loan rather than equity financing. BlackRock's investment is equivalent to a convertible bond with very demanding conditions: when Jawbone is sold, BlackRock will get funding earlier than earlier shareholders; BlackRock has a lot of management issues. The right to speak; BlackRock will also intervene in how Jawbone spends money.

After Jawbone received the funds from BlackRock, he laid off 20 employees in June.

Previously, Business Insider did a series of research on startups. Research shows that Jawbone is the most likely to fail among companies with a valuation of more than $1 billion.

Jawbone's layoffs and the closure of the New York office highlight the fierce competition of wearable devices. As the market continues to expand and mature, companies such as Fitbit, Garmin, Samsung, Jawbone, and Microsoft have entered the field, and these companies are facing increasingly heavy competitive pressures.
A person from consulting firm Creative Strategies said that fitness wearable devices are now monopolized by several players. Xiaomi and Fitbit account for 70% of the market share. The former monopolizes the low-end market, while Fitbit dominates the high-end market. above 50. "This makes the survival of other players very difficult."

In June of this year, Fitbit entered the NYSE and issued it at $20 per share. The stock broke through $50 in August. Since then, the stock price has gradually declined, and has fallen by more than 40% since this year's high, reaching around $27.

The wearable device market appears to be undergoing a round of elimination and optimization. Just a few days ago, American fashion wearable brand Misfit announced that it will be acquired by Fossil Group for US$260 million.