Nike is getting out of the golf equipment business

Nike, the most valuable sports brand in the world, is stepping out of the golf equipment business.

A company press release indicated that Nike “will transition out of equipment—including clubs, balls and bags” to focus on footwear and apparel.

“We’re committed to being the undisputed leader in golf footwear and apparel,” said Trevor Edwards, president of Nike Brand in a company press release. Sources said layoffs were announced this afternoon. Several calls to Nike officials this afternoon were not returned, and the status of Nike’s club design headquarters in Fort Worth, Texas, called The Oven, was unknown.

Nike, which reported flat to down annual sales in its overall golf business the last two years at just north of $700 million in annual sales (which includes shoes and apparel), has been in the golf business since 1984, but only introduced its first clubs after bringing in Tom Stites and his independent club design team at Impact Golf in 2000. Its first efforts came in 2001 with the Nike Forged Blades irons and then they were followed in 2002 with Pro Combo irons, which uniquely combined three different kinds of irons within the same set. Its sales in 2013 and 2014 were nearly $800 million.

The announcement comes just a few days after the company’s 2016 line of clubs was extraordinarily reduced in price. That included $400 Vapor Fly drivers reduced to $150 and $250 Vapor Fly fairway woods to $100.

The company has struggled to become a leading player in the equipment business, with market shares in woods and irons that were routinely one-tenth those of leaders Callaway and TaylorMade.

The company was known for non-traditional equipment designs over the years, including the cavity back Slingshot irons, square drivers named Sumo that reached the USGA’s limit for moment of inertia and golf balls called Mojo that were marketed in a psychedelic box. The company had groundbreaking equipment technologies, including sole channels and cavities in its metalwoods, shorter-shafted but larger headed hybrids.

Said one current Nike staff player, “I really love their equipment, but I’ll tell you this: In all the pro-ams I’ve played, I’ve never once seen one of my partners using a Nike club.”

There is no indication what will happen to Nike’s present tour staff, which in addition to Tiger Woods includes world No. 4 Rory McIlroy and 14 new players signed this year. That roster includes big hitting burgeoning stars Brooks Koepka and Tony Finau.