Dive Brief:

• Most of Barnes & Noble’s Nook engineers were laid off last Thursday, Feb. 6, according to a tip received Monday by Business Insider.

• The layoffs come amid the Nook’s sinking fortunes; the firing of its vice president of hardware, Bill Saperstein, last month; and Barnes & Noble store closings.

• The Nook, the book-seller’s branded, Kindle-like e-reader, has seen a steady decline. Nook sales, including tablets, e-books, and accessories, fell 61% to $125 million in nine weeks of 2013 holiday shopping.

Dive Insight:

It’s become widely acknowledged, even by Barnes & Noble insiders, that the popular bookseller hasn't been able to get its digital act together. It made a valiant attempt to develop its Nook hardware and e-book business, but hasn’t been able to demonstrate the market savvy that has propelled Amazon’s Kindle and other tablet competitors. Barnes & Noble hasn’t figured out how to play the e-book pricing game, either, and is getting pummeled as a result. The company says the latest move is about “rationalizing” its Nook segment, but it’s not clear yet what that means.