Is Nike?s FuelBand shutting down?

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According to CNET, the apparel giant is looking to shut down their efforts into the wearable technology venture. As far as technology goes, they will only be looking to invest in software, meaning that the FuelBand will no longer be continued, as well as the slimmer version of it that was planned for the fall.

Nike spokesman Brian Strong had this to say about realigning the companies? goals: ?As a fast-paced, global business we continually align resources with business priorities?. As far as the layoffs go, he said: ?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.?

Nike was said to have informed their technology team about the layoffs last Thursday. The technology focused Digital Sport division is composed of about 200 people with around 70 people for the sub hardware team. There is no exact count on people who are affected.

Rumors were already spreading as early as last week on Secret, an anonymous social network for gossip that relates to the tech industry. The post reads: ?The douchebag execs at Nike are going to lay off a bunch of the eng team who developed the FuelBand, and other Nike+ stuff. Mostly because the execs committed gross negligence, wasted tons of money, and didn’t know what they were doing?.

There have been rumors that Nike has been thinking about what to do with the FuelBand for several months now. It was said that the project is expensive to run and presents various manufacturing challenges and doesn?t bring in the expected margins. The company is also struggling to recruit top engineering talent to work on the said device.

There could actually be some truth to these rumors as Nike still doesn?t have Android compatibility and is stuck with only iOS support, much to the dismay of its customers. Another possibility is that since major players like Apple?s iWatch and Google?s Android Wear are coming into the scene, Nike will be having a hard time capitalizing on the market.

Photo Source: Nike store

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