Pebble laying off 40 employees

Smartwatch maker Pebble will lay off 40 employees this week, the company confirmed Tuesday.

During an interview with Tech Insider, Pebble CEOEric Migicovsky cited a conservative fundraising environment in Silicon Valley for the cuts, which amount to about 25% of Pebble's workforce.

Migicovsky says Pebble has raised $26 million in the last eight months. "We got this money, but money is pretty tight these days," he tells Tech Insider, referencing the lack of funds from Silicon Valley.

Although Pebble was among the first to hit the smartwatch market with its line of Pebble devices, the company has faced serious competition from companies including Fitbit and Apple with its Apple Watch. Earlier this week, Apple dropped the price of Apple Watch to $299. Last year, Pebble confirmed it topped 1 million in smartwatch sales.

Migicovsky says Pebble will focus more on fitness and health features for its Pebble devices.