Smartwatch pioneer Pebble to lay off 25% of its staff

Pebble CEO Eric Migicovsky confirmed that Pebble is going to lay off 25% staff in the consideration of the company’s financial condition. When interviewed by the Tech Insider, Pebble CEO also confirmed that the company had raised $28 million in debt and venture financing over the past eight months.

Pebble is one of the pioneers in the smartwatch market. Pebble smartwatch landed on the market sweeping across the whole market in 2011, which is not yet the era of intelligence.

Eric revealed in November, 2015 in a interview that the sales volume of Pebble watch was twice more than Apple’s.. The company also launched two versions of smartwatches, Pebble Time Round and Pebble Steel in September and March respectively. Among so many companies, Pebble seems to be a promising one whose products always enjoyed great popularity.

In terms of the layoffs, Eric confirmed that his company will lay off 40 employees, which account for 25% of all the staff. One of the reasons that Pebble will reduce the staff is that Pebble now is in a tough stage and is facing a shortage of funds.

Except for the financial concerns, the fierce competition in the smartwatch market might also strike the company’s dominant position as a pioneer of smartwatch firm. Especially Apple now is also targeting at the lower market by launching the cheaper smartwatch series. What Apple is doing will also threaten the ruling position of Pebble. Apart from Apple, Pebble is also rivaled by companies like Samsung, LG, Google.

Wearable devices were considered as a burgeoning market, and the research firm IDC also predicted that the global shipments of wearable devices would increased by 38.2%. Yet the authorities expressed that the situation of the market was not so optimistic. the stock of Jawbone begins to decline, Fitbit also faces the decline of its stock even thought it has released Blaze. Even Apple had to cut prices of Apple Watch though it had sold out millions of smartwatches.