Nike cuts off majority of wearable tech team

By VCPOST Staff Reporter

Apr 19, 2014 12:21 PM EDT

Nike is letting go of its Digital Sport division hardware team. The surprising move comes amidst the rising popularity of wearable tech, according to eMag.

In an exclusive report by CNET, Nike spokesperson Brian Strong was cited saying: "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."

The 70-person hardware group was informed of the job cuts on Thursday. This team is part of the firm's 200-person Digital Sport unit. The hardware team worked on electrical and mechanical hardware engineering, design, manufacturing, and software interface. Among its products are the FuelBand and the Nike+ sportswatch, the report detailed.

Nike has yet to comment on this circulating news. However, industry experts think this layoff is part of its strategy to steer the company away from hardware manufacture towards software. Meanwhile, the Orlando-based sports apparel maker has announced that its second-generation FuelBand SE will continue to be on the market for now, eMag reported.

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