Tech giant Intel is pulling away from the wearable tech market as has announced major layoffs in its wearable tech department. The company recently introduced its Basis Peak smartwatch. However, the gadget had to be recalled on account of cases involving overheating and causing injuries to users.

According to TechCrunch, insider sources say that Intel will slash the headcount of its New Devices Group (NDG). The move will be followed by the company's gradual withdrawal from the wearable tech market.

The rumors are being accompanied by pictures of an unannounced smartwatch named Basis Ruby. The wearable is said to have a sleep, activity, and heart rate tracking feature. No other details about the product are available.

In light of the rumors, the company has issued a rebuttal to the claims. Intel said that it "is in no way stepping back from the wearables business." The company pointed out that it has several products such as the TAG Heuer Connected watch and Oakley Radar Pace smart eyewear.

In 2014, Intel bought a fitness watch manufacturing startup called Basis to kickstart its foray into the wearable tech segment. The tech behemoth later absorbed the startup as its NDG unit. The company followed the purchase of Basis with the acquisition of Recon in June 2015. Recon makes wearable heads-up displays for activity enthusiasts.

Despite the aggressive acquisition spree, Intel was not able to make much headway in the highly competitive wearable tech market. There are rumors that the company may carry out the layoffs by the end of the year.