Further question marks have arisen over Nokia’s intention to return to the smartphone market via brand-licensing following news that its head of new products and brand licensing, Sebastian Nystrom, is leaving the company.

Nystrom will leave Nokia’s Technologies unit to take a new role at Finnish retailer S Group, Reuters reported. Nokia states the departure is “due to personal reasons.”

Nokia sold its Services & Devices unit to Microsoft last April. Nokia can licence its name to other handset makers from the fourth quarter of 2016, under the terms of the agreement signed with Microsoft. And it can already licence its brand for other consumer electronic devices.

However, last month the Finnish player stated “it has no plans to manufacture or sell consumer handsets”. It made the statement as a response to quash rumours that it was manufacturing consumer handsets out of an R&D facility in China.

Late last year Nokia launched a brand-licenced tablet produced and distributed under licence by Taiwan’s Foxconn.

Nystrom’s departure comes days after reports suggesting the company intends to cut up to 10 per cent of its staff from its IP unit Nokia Technologies.

The latest series of events is further indication that Nokia will instead focus predominately on its network business for the foreseeable future, following its decision to acquire long term rival Alcatel-Lucent for $16.6 billion.