Nike CEO Mark Parker defended the layoffs inside the team that makes the FuelBand, a fitness tracker. According to him, the decision was due to the company's switch from hardware to software, moving out of the wearable hardware market.
Parker responded to FuelBand to speculations but did not talk about the cuts directly, nor did he confirm anything about the FuelBand's future. He clarified though that they will continue selling the latest version of the FuelBand, the FuelBand SE, and will be releasing new colors of it in the next months. He also made a statement about the company's change in focus, CNET reports.
He explained how the company is looking to further its success with its Nike+ software and apps, which use the Nike Fuel workout metric. The service currently has 30 million users, and Nike would like to increase that number to 100 million.
"We are focusing more on the software side of the experience. I think we will be part of wearables going forward. It will be integrated into other products that we create and that we're looking to expand our partnerships to create more reach for the Nike Fuel and Fuel system that we have," he said in an interview with CNBC.
Parker was addressing reactions to the layoffs, which happened on April 17. Nike let go of some of its 70-person FuelBand hardware team, plus some people from its Digital Sport division, which consisted of around 200 members. According to spokesman Brian Strong who emailed CNET, the decision was made as part of the company's shift in the company's priorities.
Parker also touched on rumors about a future partnership with Apple. The hardware company collaborated with Nike in the past, and is said to be making a wearable device of its own. Apple CEO Tim Cook has also expressed an interest in FuelBand technology.
"I will say that the relationship between Nike and Apple will continue," Parker said to CNBC.
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