Intel Corp (INTC) - Get Intel Corporation Report gave its health wearables division the axe after laying off about 80% of the team working on fitness trackers and smartwatches last November, CNBC reported.
Intel acquired health tracker producer Basis in 2014 for $100 million, but the deal didn't work out as planned after some of Intel's Basis watches were recalled on overheating concerns. Intel hasn't mentioned its wearables business on an earnings call since 2014 as it slowly deemphasized the department.
The group that was formerly working on Basis products, now called the New Technologies Group, will shift its focus to augmented reality.
Intel hyped its wearables business several years ago, hiring rapper 50 Cent to show off heart-rate sensing earbuds. But Intel never competed with Apple Inc (AAPL) - Get Apple Inc. Report and Fitbit (FIT) - Get Fitbit, Inc. Class A Report as it had hoped.
Intel stock traded slightly down premarket.
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