Updated April 19 8:40 PM PT with a statement from Nike.

If reports are true, it looks like Nike just laid off 70 to 80 percent of its FuelBand team.

The reason for such a move, CNET reports, is huge: Nike reportedly believes its future lies in software — not hardware, like the FuelBand fitness tracking device.

Nike has not yet officially announced that it will cease FuelBand production. CNET’s report claims that Nike’s software team will continue to work on products such as the NikeFuel workout metric. Nike’s Web products will apparently not be affected.

At this point, it’s important to take the report with a grain of salt. Nike did not immediately respond to VentureBeat’s request for confirmation.

Update: Nike has released a statement in response to CNET’s report. According to The Next Web, Nike will continue to “sell and support the Nike+ FuelBand SE for the foreseeable future.” It’s noteworthy, however, that Nike did not completely refute CNET’s claims. Nike’s wearables initiatives appear neither doomed nor promising.

Read moreNike’s new Fuelband: Just as stylish, but with more sports-specific smarts

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