Fitbit estimates lower fourth-quarter revenue, cuts jobs

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Wearable fitness device maker Fitbit Inc estimated fourth-quarter revenue below its own forecast and said it would cut about 6 percent of its workforce after a weaker-than-expected holiday quarter.

Fitbit's shares fell nearly 14 percent to $6.20 in early trading on Monday.

The company said it now expects fourth-quarter revenue between $572 million and $580 million from its previous forecast of $725 million-$750 million.

Fitbit also said it expects an adjusted net loss of 51-56 cents per share in the quarter, compared with a previously announced profit of 14-18 cents.

See photos of the device below:

8 PHOTOS
Fitbit, exercising with Fitbits
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Fitbit, exercising with Fitbits
NEW YORK, NY - FEBRUARY 02: Fitbit Alta products on display as celebrity fitness trainer Harley Pasternak and stylist to the stars Anita Patrickson help introduce Fitbit Alta, a slim, sleek fitness wristband that can be personalized to fit your style, on February 2, 2016 in New York City. Fitbit Alta is designed with a satin finish, stainless steel body and features a line of interchangeable bands in multiple popular colors and premium materials. (Photo by Dave Kotinsky/Getty Images for FitBit)
NEW YORK, NY - FEBRUARY 02: Celebrity fitness trainer Harley Pasternak (pictured) and stylist to the stars Anita Patrickson help introduce Fitbit Alta, a slim, sleek fitness wristband that can be personalized to fit your style on February 2, 2016 in New York City. Fitbit Alta is designed with a satin finish, stainless steel body and features a line of interchangeable bands in multiple popular colors and premium materials. (Photo by Dave Kotinsky/Getty Images for FitBit)
NEW YORK, NY - FEBRUARY 02: Celebrity fitness trainer Harley Pasternak and stylist to the stars Anita Patrickson help introduce Fitbit Alta, a slim, sleek fitness wristband that can be personalized to fit your style on February 2, 2016 in New York City. Fitbit Alta is designed with a satin finish, stainless steel body and features a line of interchangeable bands in multiple popular colors and premium materials. (Photo by Dave Kotinsky/Getty Images for FitBit)
The Fitbit Inc. Blaze fitness tracker is unveiled during an event at the 2016 Consumer Electronics Show (CES) in Las Vegas, Nevada, U.S., on Tuesday, Jan. 5, 2016. CES is expected to bring a range of announcements from major names in tech showcasing new developments in virtual reality, self-driving cars, drones, wearables, and the Internet of Things. (David Paul Morris/Bloomberg via Getty Images)
SAN DIEGO, CA - NOVEMBER 14: Volunteers take part in Fitbit introduces Fitbit Local, free all-levels workouts led by talented community trainers. The launch in San Diego included a morning bootcamp and yoga session led by Sheri Matthews and Mike Sherbakov. Get Together. Sweat Together. (Photo by Robert Benson/Getty Images for Fitbit)
SAN DIEGO, CA - NOVEMBER 14: Volunteers take part in Fitbit introduces Fitbit Local, free all-levels workouts led by talented community trainers. The launch in San Diego included a morning bootcamp and yoga session led by Sheri Matthews and Mike Sherbakov. Get Together. Sweat Together. (Photo by Robert Benson/Getty Images for Fitbit)
HOLLYWOOD, CA - NOVEMBER 11: Professional Boxer Miguel Cotto trains with Fitbit Surge in preparation for his fight on Nov. 21 with Canelo Alvarez at Wild Card Boxing Club on November 11, 2015 in Hollywood, California. (Photo by JC Olivera/Getty Images for fitbit)
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Analysts on average were expecting a profit of 17 cents per share and revenue of $736.36 million, according to Thomson Reuters I/B/E/S.

Fitbit said it estimates sales of 6.5 million devices in the quarter compared with 8.2 million devices a year earlier.

The company also forecast 2017 revenue of $1.5 billion-$1.7 billion, widely missing analysts' average estimate of $2.38 billion.

The company expects a challenging year-over-year comparison in the first half of 2017.

Fitbit, which had about 1,627 employees as of Oct. 1., said it expects to record about $4 million in restructuring charges in the first quarter of 2017.

(Reporting by Rishika Sadam and Aishwarya Venugopal in Bengaluru; Editing by Martina D'Couto)

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