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Update, November 21: Intel reached out to Engadget to deny that it’s pulling out out of the wearable business. The statement does not, however, dispute the layoffs. Here’s the statement:

“Intel is in no way stepping back from the wearables business. In fact, we have several products in the works that we are very excited about, as well as prior launches that highlight our wearable technology such as the TAG Heuer Connected watch and recent Oakley Radar Pace smart eyewear.”

Original post, November 19: Intel’s foray into processors for wearables hasn’t exactly gone swimmingly. That said, the wearable market’s foray into the popular consciousness hasn’t gone that well either. Now, according to Tech Crunch, Intel is about to lay off the vast majority of its wearable division staff and may retreat from the market entirely.

According to “sources close to the company,” Intel’s New Devices Group (NDG) is facing “a large number of layoffs,” with more to come from the larger New Technologies Group in which the NDG is included.

According to Tech Crunch: “The company has already informed a number of employees about the changes, with many expected to lose their jobs before year’s end. Reports thus far have been varied, but all point to a large job loss for those in the NDG and the possible shut down of the group altogether.”

The news may not come as much of a shock to those that have been following Intel’s progress in the wearables space, especially considering its Basis Peak device recall and sales halt in the summer, but it’s always disappointing to see a major component maker exit an exciting new market.

What are your thoughts on the future of wearables? Are they a slow starter or a non-starter?