Nike to exit the wearable hardware market

A couple of years ago I bought a Nike+ FuelBand and thought it was an impressive piece of hardware. I looked forward to future updates, but according to CNET Nike fired most of the FuelBand team and is getting out of the activity tracker hardware business. With all of the wearable announcements at CES 2014 and analysts predictions for continued growth in this market I was a bit surprised to hear the news. 

Nike is gearing up to shutter its wearable-hardware efforts, and the sportswear company this week fired the majority of the team responsible for the development of its FuelBand fitness tracker, a person familiar with the matter told CNET. “As a fast-paced, global business we continually align resources with business priorities,” Nike spokesman Brian Strong said in an email. “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 company informed members of the 70-person hardware team — part of its larger, technology-focused Digital Sport division comprised of about 200 people — of the job cuts Thursday. About 30 employees reside at Nike’s Hong Kong offices, with the remainder of the team at Nike’s Beaverton, Ore., headquarters.