Once the darling of Silicon Valley, one of a new breed of “Unicorns” (privately held companies worth more than one billion), Jawbone is hurting. In fact, the tech firm recently told CNN it has laid off up to 15% of its staff…that’s 60 people for those scoring at home. Worse, the company has elected to close its NYC offices, officially evacuating the east coast.
So, what is Jawbone, what made them so popular, and what led to their current drama?
The firm develops and sells wearable fitness trackers as well as other consumer electronics. Founded in 1999, Jawbone is one of the oldest unicorns in the industry. While its rise was not exactly meteoric, the company did very, very well, crossing the billion-dollar threshold in 2011.
Jawbone defended the layoffs with the standard industry corporate doublespeak, saying they intended to “create a more streamlined and successful company.”
So, where they not streamlined and successful before? That’s the question many industry watchdogs are asking. Though, dig a little below the surface, and that may be more than a bit unfair.
Jawbone is, by no stretch of the imagination, struggling. Sure, the shuttered their NYC offices, but they still employ more than 400 people in six offices in the United States, China and England. In a statement released to the media, Jawbone said: “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.”
Step one, now that the team is tighter … getting the most out of the current team. Jawbone appears to be happy. They’re not planning any more layoffs, and they are already moving forward, suggesting a developing plan.
That’s great news for investors and may prove to be a strong launch point for a broader spectrum of positive PR. If the company has specific plans, now would be the time to tease them. After two rounds of layoffs (the first came in June) they are due for some happy news. This is their opportunity to push that message.
