Nike denies reports of ceasing production of tech-focused fitness hardware
21 Apr 2014
Nike has denied recent reports that it was moving to cease production of technology-focused fitness hardware.
Newsreports on Friday claimed that the sports apparel company would lay off the majority of staff behind its Nike+ FuelBand SE wrist device.
The Nike+ FuelBand, activity tracker worn on the wrist, is used with an Apple iPhone or iPad device, or computer running Windows.
With the FuelBand wearers can track their physical activity, steps taken daily, and amount of energy burned.
In a statement to Re/code, the company said there would be a "small number" of layoffs fitness hardware production would continue.
The company explained: "The Nike+ FuelBand SE remains an important part of our business.''
"We will continue to improve the Nike+ FuelBand App, launch new METALUXE colours, and we will sell and support the Nike+ FuelBand SE for the foreseeable future."
However, according to sources close to the publication, a decision over the FuelBand's future had been debated at Nike for several months due to high expenses, manufacturing challenges and a struggle to reach adequate business margins.
Apple CEO Tim Cook sits on the Nike board, and there had been speculation that the companies could be working together on a wearable device.
CNET had reported, quoting sources, the job cuts would affect 70 people from the scheme and around 200 people from the Digital Sport division were also affected.
The Digital Sport team worked in fields exploring manufacturing operations, hardware engineering, industrial design, and software interface design and is the team behind the FuelBand, Nike sportswatch, and other wearable sport equipment.
"As a fast-paced, global business we continually align resources with business priorities," Nike's spokesman Brian Strong said in an email to CNET. "As our Digital Sport priorities evolve, we expect to make changes within the team, and there will be a small number of layoffs. We do not comment on individual employment matters."
The sportswear company, had this fall planned to release a newer version of the FuelBand but delayed the project.
