Nike has moved to calm reports it plans to ditch its completely FuelBand wearables division following layoffs this week.
A report on Friday claimed the sportswear giant had fired the majority of staff in charge of developing the fitness wristbands, in order to focus solely on software.
While Nike confessed to a "small number" of layoffs, the firm says it remains committed to selling existing products and developing the accompanying apps.
"The Nike+ FuelBand SE remains an important part of our 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."
Despite Nike seemingly quelling the reports, the statement mentions nothing about the development of new hardware, only a desire to continue selling the current generation devices.
Judging from the statement, it appears the prospect of a third-gen FuelBand device may be distant one.
Nike’s potential departure from the emerging wearables market, while it is still relatively young, could act as a rude awakening for those firms betting the family farm on the sector exploding.