Nike confirms 'small' layoff but diffuses FuelBand shutdown rumours

Update: In response to the reports about Nike shutting down its Fuelband development and laying off the hardware team related to the fitness band, Nike has issued an official statement to Re/code in an email. Nike has confirmed a small number of layoffs but diffuses the rumours about shutting down the hardware side of its FuelBand completely. “The Nike+ FuelBand SE remains an important part of our business. We will continue to improve the Nike+ FuelBand App, launch new Metaluxe colors, and we will sell and support the Nike+ FuelBand SE for the foreseeable future," the company said. However, the company hasn't clarified if it plans to build new products in the FuelBand lineup. News has it that Nike has pulled the plug on its FuelBand. According to Cnet, Nike has fired most the team responsible for FuelBand development and is planning to stop the production of the device. The email sent to the news site by Nike spokesman Brian Strong states, “As a fast-paced, global business we continually align resources with business priorities. 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." Out of 200 people from its Digital Sport division, the company has fired a 70-person hardware team. The source is still unclear about how many current employees have been recruited internally to join other Nike divisions. However, Nike Digital Tech that has been responsible for Web software isn’t affected so far. Nike had plans to release a new iteration of the FuelBand, but has reportedly canned the project. It also has shelved all the future physical product projects under the Digital Sport division, points out the report. The company will still continue to sell its second-generation FuelBand SE for some time, though. In fact the company is said to  be working on improving the Nike+ FuelBand App and could launch new METALUXE colours too. While most manufacturers including Apple, Google and Samsung are now focusing on fitness-centric wristbands, Nike has decided to quit. However,  looks like, it only plans to stop hardware production and yet improve its existing software.