From the Super Mario Wiki
Jabits (along with Ninjas) are the security of Smithy Gang and are usually wandering around Smithy's Factory. Jabits are apparently easy to make in large numbers because their usual plan of attack is self-destructing. They are often accompanied in battle by Mad Mallets and Poundettes. Also, in the assembly-line section of the factory, Mario can observe the process of Jabits being manufactured.
Drill Bit, a unique red Jabit who was newly created at the time of Mario's arrival, appears once to try to talk some sense into Smithy, so it may have been intended to be a high-ranking member. However, Drill Bit was also an unused enemy, with battle data for one to five Drill Bits, suggesting it was going to be an enemy group variant. In addition, four Machine Made versions of these types of enemies appear when the Yaridovich copies use a move called Multiplier!
Jabit's name comes from a portmanteau of "jab," meaning "to poke or thrust a sharp object," and "bit," as in "drill bit" (which is what they are).
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