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Fitbit shares plunge after job cuts, disappointing quarterly results

Fitbit to trim workforce and report earnings miss

Shares of Fitbit plunged as much a 18 percent Monday after the wearable fitness device maker announced job cuts and disclosed lower-than-expected fourth-quarter results.

The stock later recovered some of those losses, but still ended the day nearly 16 percent lower.

In a release on Monday, the company said its cuts will affect 110 people across multiple departments, constituting about 6 percent of the company's global workforce.

The cost of the reorganization efforts are expected to be about $4 million, which will be recorded in the first quarter of 2017.

The company also said it expects to report 6.5 million devices sold and revenue for the fourth quarter of 2016 to be in the range of $572 million to $580 million, a significant drop from the company's previously announced guidance range of $725 million to $750 million.

"We believe the evolving wearables market continues to present growth opportunities for us that we will capitalize on by investing in our core product offerings, while expanding into the smartwatch category to diversify revenue and capture share of the over $10 billion global smartwatch market," said James Park, Fitbit co-founder and CEO, in a statement.

It expects annual revenue growth to be about 17 percent from the previous forecast growth of 25 percent to 26 percent.

With Monday's losses, Fitbit shares have shed 63 percent in the past 12 months.

Fitbit 5-day chart