Nike is not shutting down FuelBand

Posted Apr 20, 2014

This past week, Nike confirmed a small number of layoffs in its digital sports division and there were rumors that the company was going to shut down the hardware side of the FuelBand team. Nike said that the rumors were not true in an interview with Re/code.

?The Nike+ FuelBand SE remains an important part of our business,? the company said in a statement emailed to Re/code. ?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.?

It is believed that executives at the company are on-the-fence about what to do with FuelBand internally. The FuelBand line of products have manufacturing challenges, high expenses, and poor margins. Nike also seems to have a hard time attracting engineering talent as the business grows. FuelBand does not have an Android app yet, which causes frustration for potential customers.

CNET reported that the layoffs includes as much as 80% of the hardware team. The software end of the business sounds like it is thriving though. Earlier this month, Nike announced the opening of the Nike+ Fuel Lab in San Francisco. The company is also partnering with companies like MyFitnessPal, RunKeeper, and Strava.