Jawbone Shuts New York Office, Lays Off 15% Of Workforce
Wearable behemoth, Jawbone, on Thursday laid off 60 employees (15% of its employee base), shut its New York office, which was largely dedicated to marketing, and downsized its operations in Sunnyvale and Pittsburg in a bid to handle the growing competition in the wearable market.
Confirming the news, a spokesman revealed in an interview with Techcrunch how the “difficult decision” was solely for the greater good of the organisation and part of a “strategy to create a more streamlined and successful company”.
“We are sad to see colleagues go, but we know that these changes, while difficult for those impacted, will set us up for greater success,” he said.
It’s not the first time this year the otherwise successful company has taken a similar course. Back in June, 20 employees (14 percent of the company’s global workforce) were given their cards, a decision largely believed to have been triggered by BlackRock, the company behind Jawbone’s $300 million funding in February.
It may not be the last time either. With the wearable market getting more and more overcrowded with newer companies and products, established companies such as Jawbone are forced to do whatever it takes to remain on track and keep their profits constant at the very least, even if it means reducing the payroll by trimming their workforces every other week.