The sports apparel company has laid off about 55 people from its Digital Sport team.
Nike has axed majority of engineering workforce involved in FuelBand fitness tracker fuelling speculation that the sportwear company is ‘exiting’ from this business.
The sports apparel company has laid off about 55 people from its Digital Sport team of about 70 people, according to a report from CNET.
A spokesperson of Nike was cited by CNET as saying that, "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 spokesperson added.
But later, the company scotched the speculation saying that FuelBand SE remains an important part of its business.
"We will continue to improve the Nike+ FuelBand App, launch new MetaLuxe colours, and we will sell and support the Nike+ FuelBand SE for the foreseeable future."
The company added that it will continue to sell its second-generation FuelBand SE.
Launched in February 2012, the wrist mounted fitness tracker which can be used with an Apple iPhone or iPad device, or Windows powered PC.
FuelBand fitness tracker allows the users to track their physical activities and get feedback by syncing the information with the iOS.
Comes integrated with the Nike+ online community and phone application, which allows the users to set their own fitness goals, monitor their progression, and compare their fitness regime with others in the community.
Nike spokesperson KeJuan Williams said an email that the company is committed to Nike+, to NikeFuel, and to driving innovations that bring richer experiences for all athletes."
"We will continue to leverage partnerships to expand our ecosystem of digital products and services, using NikeFuel as the universal currency for measuring, motivating and improving."