Smartwatch Maker Pebble Lays Off Quarter of Staff CEO says the layoffs are required due to 'a chilly fundraising environment' in Silicon Valley.

By Jason Cipriani

This story originally appeared on Fortune Magazine

Pebble

Pebble, the company that helped usher in the smartwatch era, is tightening spending through a round of layoffs.

On Wednesday, Pebble CEO Eric Migicovsky told Tech Insider that 40 employees, equating to roughly 25 percent of his company's workforce, would be let go this week.

According to Migicovsky, the layoffs are required due to "a chilly fundraising environment" in Silicon Valley.

Pebble originally saw success with its first smartwatch on Kickstarter, where the company's campaign raised over $10 million in 2012.

The firm later raised another $20 million via its second Kickstarter campaign for its current crop of Pebble Time smartwatches.

In addition to its Kickstarter success, Migicovsky told Tech Insider that Pebble raised another $26 million over the last eight months.

By letting employees go when raising money is getting tougher, the company can focus on its future. Migicovsky says his company has a vision for "where wearables will take us" over the next five to 10 years.

Earlier this month, Pebble dropped the price of its Pebble Time and Time Round smartwatches by $50. The price drop rounds out Pebble's product offering, which ranges from $100 to $250, depending on the model.

In December, the company added fitness tracking capabilities to its Pebble Time lineup of watches. Through a health app, the watch gained the ability to count steps and track sleep.

According to Migicovsky, Pebble's focus going forward will continue to be development of health and fitness features as well as an expansion to India through a partnership with Amazon.

Jason Cipriani is a contributor to Fortune and writes "Logged In," a weekly personal technology column.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Money & Finance

How Much Money Do You Need to Retire Comfortably in Your State? Here's the Breakdown.

Regardless of where you spend your golden years, it pays to be realistic about the cost of living.

Buying / Investing in Business

Former Zillow Execs Target $1.3T Market

Co-ownership is creating big opportunities for entrepreneurs.

Business News

Did Apple Block Fortnite From the App Store? Here's What We Know.

Epic Games' megahit "Fortnite" is currently unavailable on iPhones in the U.S. and the E.U.

Business News

These Are the College Majors With the Lowest Unemployment Rates — and Philosophy Ranks Higher Than Computer Science

An analysis of employment data from the Federal Reserve Bank of New York shows that some humanities majors rank higher than STEM majors in employment prospects.

Money & Finance

Turn Simple Ideas Into Never-Ending Paychecks With This Low-Effort Passive Income Strategy

A micro-hustle lets you build once, sell forever and earn money while you sleep.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.