Home >> News >> Nike will not kill FuelBand segment, but it will trim the team behind wearables

Nike will not kill FuelBand segment, but it will trim the team behind wearables

Update on April 27: Bringing an end to the rumors of the end of Nike FuelBand wearable devices, Nike’s CEO Mark Parker confirmed that the company would be focusing more on “smart” software rather than creating wearable hardware.

Last Friday, CNET reported that Nike is planning to stop producing the hardware for its Nike+ FuelBand SE wristband by laying off many staffs from the department. Now, Nike has denied the report and said that there would be a small number of layoffs and it would continue the FuelBand segment.


Nike released a statement to Re/code saying that the company would continue producing the fitness wearable gadgets.

Nike said in an email:

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.

Still, we feel something fishy as the original report said that there would be as much as 80 percent of layoffs could happen at Nike, but the company said that only “small numbers” and not revealed the exact numbers. There are about 70 people are there in the Nike’s wearable hardware segment and if the CNET’s claims are true, then around 55 employees from the department will go home.

Reports also claims that the high expenses, low business margins and manufacturing challenges are the key reason for the slowdown of Nike+ FuelBand SE’s production.

Meanwhile, Tim Cook of Apple is one of the member in Nike’s board of directors. This keeps a hope in our mind that there could be a chance of partnership between Google and Nike for developing smartwatches as well as similar fitness gadgets in future.

Stay tuned for more updates on this story. Post your opinions in the comments field below.

About John W Arthur

John is the head of our IT Security team and he writes about Security, IT news on The Next Digit. He was the Employee of the Year 2013 for his selfless support and efficiently setting up the whole security infrastructure. He also occasionally writes on "IT Sec Pro" Print Media of Sweden. All posts by John


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