Fitness tracking device makerJawbone has laid off 60 employees globally — 15 per cent of its staff, TechCrunch’s Ingrid Lunden reports.
In addition to the layoffs, Jawbone is also shuttering its New York office. Its operations in Pittsburgh and Sunnyvale are also being downsized as part of the layoffs.
“Jawbone’s success over the past 15 years has been rooted in its ability to evolve and grow dynamically in a rapidly scaling marketplace. As part of our strategy to create a more streamlined and successful company, we have made the difficult decision to reorganise the company which has had an impact on our global workforce,” a spokesperson told TechCrunch, confirming the news.
“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.”
The convertible loan came with some pretty strict terms: In the event of a sale, BlackRock will get paid before the investors who went into earlier rounds, and BlackRock will also have significant say in executive makeup and how the company spends its money, according to the report.
After raising that round of funding from BlackRock, Jawbone laid off 20 employees in June.
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 an analysis of startups conducted for Business Insider by startup insight platform Mattermark, Jawbone was one of the “unicorns” — companies with private-market valuations of greater than $US1 billion — observed to have the greatest risk of failure.
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