Nokia May Close Fractured Digital Health & Wearables Unit

Nokia May Close Fractured Digital Health & Wearables Unit

Nokia May Close Fractured Digital Health & Wearables Unit

Nokia has announced a strategic review of its digital health business, less than six months after the company said it must seize the opportunities afforded by changes to the healthcare market.

Those actions come amid a larger push by Nokia to cut costs as part of its 2016 merger with Alcatel-Lucent.

Less than two years after putting the pieces together for a business unit to serve the digital health space, Nokia is reevaluating the status of that business.

Nokia did not give any reasons for the review - but it has been public knowledge that all is not well at the unit since late a year ago when the firm axed development of a high-tech but high-cost virtual reality camera that could have had applications in digital health.

More news: Jacob Zuma resigns as South African President
More news: Nikolas Cruz Charged in Florida High School Shooting, More Details Released
More news: Jeffrey Tambor decries ouster from 'Transparent'

The firm's decision apparently comes as a surprise to its partners, having arrived in lesser than a couple of years - as of June 2016, Nokia had paid Dollars 192 million to purchase Withings, a French consumer electronics firm, for entering a new business portfolio of the digital health business.

"The strategic review of the Digital Health business may or may not result in any transaction or other changes", said Nokia in a statement. The division has created a range of smartwatches, smart scales, and other digital health devices for consumers and enterprises. That portfolio was largely unchanged when Nokia launched the products under its own brand in mid-2017, calling its line-up the "most comprehensive line of connected consumer health products in the market". The new Nokia technology generated around $800 million in annual revenue for the unit and had around 800 employees who were mostly engineers.

Nokia on Thursday announced it is planning on shedding well over 400 jobs in Finland.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.