They may have had a pretty successful Kickstarter campaign last year for its Pebble Time smartwatch, but it looks like not all is bright and promising at the company. CEO Eric Migicovsky has admitted that they are actually laying off 25% of its employees mainly because “money is pretty tight” for the tech company. Around 40 employees will be let go from the company, signaling that they might be heading into trouble pretty soon as the competition grows extremely tighter.
When Pebble entered the wearable market back in 2012, there weren’t many other companies producing smartwatches like theirs, which can be connected to both iOS and Android smartphones. But now, the market is being saturated with smartwatches and fitness bands, with almost all OEMs having their own. Even traditional watch makers are joining the fray. This means that Pebble is up against some pretty tough competition.
Migicovsky indicated that they might be changing directions by focusing more on health and fitness features. They already offer several for now, but they do not have a sports smartwatch per se. The fitness wearable market is also growing, so they might want to get in there before it becomes truly saturated.
There is some ray of hope though. Pebble is reported to have raised $26 million over the last eight months from venture capitalists. And the $20 million from the Kickstarter campaign last year is no mere change. But we still don’t know however if this will be enough to ensure a future for the smart watchmaker.
VIA: The Verge
40 layoffs out of 120 staff is 33%. Not 25%. None of the so called reviewers are pointing out the error – just reprinting press releases & calling it news. No wonder Pebble is going down the tubes: basic elementary school arithmetic anyone?