Nokia initiated a review of strategic options for its Digital Health business, as more job cuts in Finland are also planned.
Part of the Nokia Technologies unit, Digital Health includes consumer and enterprise products and “manufactures and sells an ecosystem of hybrid smart watches, scales and digital health devices”. The unit was bolstered by an acquisition of wearables company Withings in 2016.
In a statement, Nokia said the review “may or may not result in any transaction or other charges”.
Nokia had touted Digital Health as a strategic focus at a point when it also said it would reduce its investments in the VR market. With VR and now health falling out of favour, Nokia Technologies looks increasingly like a licensing unit rather than an engine for future growth.
In a statement today (15 February), Nokia said: “the patent business, brand partnerships and technology licensing units in Nokia Technologies are not in the scope of this review”.
In a statement issued in Finnish, Nokia said it was planning “further measures for its Finnish operations to ease its cost structure”.
Nokia announced a “worldwide synergies and cost savings” scheme in line with its acquisition of Alcatel-Lucent in 2016. With the company acknowledging weakness in the networks market in 2018, further cuts are needed.
Nokia will next week hold a meeting with employee representatives, which is “expected to result in a reduction of around 350 jobs”. The company said plans apply to all Nokia business groups and support functions, and are expected to target all Finland sites, although it also said a plant in Oulu “is not part of the plans announced today”.
The company also stated Nokia Technologies will “launch co-operation negotiations…in response to business challenges and [to] increase business cost efficiency”, with the likely cost of 75 jobs. It is not clear how this relates to the Digital Health review, or the comment the licensing unit was not in the scope of the review.
Nokia said its restructuring plans in other countries are “also advancing”.