Sportswear firm Nike has laid off the engineering team responsible for developing hardware for its FuelBand fitness tracker, according to CNET.

The 70-strong team working on Nike’s range of wearable hardware, which includes FuelBand, was part of the company’s Digital Sport division.

“As a fast-paced, global business we continually align resources with business priorities,” Nike spokesman Brian Strong said in an email to CNET. “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.”

However, according to the CNET report, the Nike+ FuelBand SE is still an “important part” of Nike’s business.

The company said it plans to continue to work on the associated app, launch the fitness band with new colours, and ultimately sell and support the FuelBand “for the foreseeable future”.

“The exit of Nike from its FuelBand product shows how difficult hardware can be and that the real value is in the service and the data,” said Richard Windsor, founder and writer of the Radio Free Mobile blog.

Windsor added that Nike’s hardware exit is an “ominous sign for the fledgling wearables industry as any product without a unique use case and rock solid reliability looks destined to fail”.