Wearable Fitness Devices Maker Jawbone Cuts Jobs

Jawbone the San Francisco-based company behind 'smart' wireless earpieces and Jambox speakers redesigned UP wristbands that combine fashion with smartphone lifestyles to help people along paths to improved fitness

On Thursday, the fitness tracker manufacturer sacked 60 employees - 15% of its workforce - and shuttered its New York offices. A source close to the company says there are no further cuts currently planned. What's more, the company is reportedly closing its marketing office in New York City and downsizing at its Pittsburgh and Sunnyvale locations.

A company spokesperson said: "Jawbone's success over the past 15 years has been rooted in its ability to evolve and grow dynamically in a rapidly scaling marketplace".

These Fitbit wearable armbands are dominating the fitness tracker market, leaving Jawbone on the low end of the industry's profits.

The company will continue to be selling its Jambox speakers and the Era headset, along with related accessories.

Jawbone ran into trouble around the release of its UP3 band, which was delayed, though Apple offered Jawbone a lifeline when it announced it would start stocking Jawbone products in its stores earlier this year. In last month Jawbone received a preliminary injunction and that the ex-employees were forced to hand over all "confidential, proprietary information, technical data, trade secrets or know-how".


IDC's most current figures for the second quarter show that Jawbone's UP fitness trackers have sold just over half a million. This made it nearly impossible for the company to compete in the highly competitive wearable market.