Last year, semiconductor giant, Intel, laid off 12,000 of its employees, as part of an effort to restructure its business and move away from smartphones and tablets. According to a CNBC report, the company has now also shuttered its wearables division, which worked on smartwatches, fitness trackers, and health wearables.
In 2014, Intel hoped it would become a major player in the wearables category, leading to its $100 million purchase of Basis, a maker of fitness watches. According to a source familiar with the matter, the acquisition did not pan out as expected, leading to the layoff of about 80 percent of Basis employees in November. Furthermore, the same source said that Intel completely eliminated the group two weeks ago, shifting its focus to augmented reality instead.
It is not yet clear if the company will continue to pursue partnerships with other smartwatch manufacturers that incorporate Intel’s chips. While the firm still advertises its Curie chipset for Internet of Things and wearable devices on its website, we might get a clearer picture of Intel’s plans when the company reports its Q2 earnings on Thursday, July 27.