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Nest to Disable Revolv Hub, Mulls Paying Back Users

Early adopters who sprung for Nest's $299 Revolv smart home hub may get their money back.

After this week's announcement that the Revolv smart home hub will soon be disabled, Alphabet-owned Nest says it's working to compensate customers who've been using the system.

Revolv was acquired by Nest, Aphabet's smart home arm, in 2014. On May 15, the Revolv system will no longer work — users will have to find a new way to control their smart home systems.

Glimpse Of The Future at Consumer Electronics Show 1:28

Meanwhile, the money that Nest would have spent on supporting Revolv will go toward the Works with Nest system, which links to a number of smart home devices with household names like Whirlpool dishwashers and Philips lights, according to Nest.

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"Revolv was a great first step toward the connected home, but we believe that Works with Nest is a better solution and are allocating resources toward that program accordingly," Nest spokesman Billy Burnett said in an email to CNBC.

Nest is working with customers on a case-by-case basis on compensation, according Burnett. The company would not disclose exactly how Revolv users would be compensated or whether their Revolv devices could be replaced by Nest devices.

Nest declined to share the number of customers affected by the Revolv shutdown.

Last week, two key Nest employees left the company amid increasing pressure to improve sales of internet-connected devices, according to a Re/code report.

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