Jawbone has almost no inventory left of its UP wearable activity trackers and has struggled to pay one of its customer service agencies, according to a new report in Business Insider.
Jawbone, which for years made audio technology and popular Bluetooth speakers before shifting its focus to wearable tech, failed to make payments to NexRep, a Portland, Maine-based customer service agency, before ending the relationship in early September. The severed relationship resulted in job losses at NexRep.
Jawbone already had a shaky track record when it comes to paying some of its contractors: The Information reported last month that Jawbone was having trouble paying one of its business partners, and Jawbone was at one time sued by global manufacturer Flextronics for breach of contract.
Jawbone has failed to pay another one of its contractors, report says
As for its inventory its UP activity-tracking wristband, Jawbone's own website is entirely sold out of the product, along with all accessories for it.
Jawbone raised $165 million in funding earlier this year, and has raised over $900 million dollars total since the company first launched. But despite its big raises, the company has been plagued with issues around manufacturing, product quality, and cash flow. Many key employees have left, including Travis Bogard, the company's head of product who left for Uber in July. Some of Bogard's team members have subsequently left as well, a source tells The Verge. In 2015, Jawbone hired Google executive Sameer Samat to be its new president; Samat left to return to Google seven months later, Recode reported.
The Verge reported in May that Jawbone is working on a medical-grade health sensor that the company does still intend to release. The technology is very likely something that would be sold to other tech companies rather than directly to consumers, sources have told The Verge.
Update: In a statement to The Verge, a representative for Jawbone said it is reviewing its bills from NexRep and is restructuring its customer service. It also said that a statement NexRep has made, that Jawbone is struggling financially and unable to pay that contractor, is false.
Also, Jawbone confirmed that it is sold out of its activity-trackers and is no longer selling them on its own website.