Nokia’s troubled digital health business
The company acquire...
The Finnish communications technology firm, Nokia, is to re-strategise its digital health business following disappointing results.
The company acquired the French startup, Withings, two years ago for US$191mn.
Nokia bought Withings, the digital company specialising in activity trackers and digital thermometers, in a bid to enter the health industry.
However, the Finnish firm noted $175mn of goodwill recorded in the third quarter of last year.
Due to the business not being as successful as it had hoped for, Nokia has announced plans to evaluate plans with its health branch.
“The strategic review of the Digital Health business may or may not result in any transaction or other changes,” the company stated.
According to Reuters, the review of the digital health arm could lead to 425 jobs being cut in Finland, where it employs 6,300 people.
The company’s aim to reduce employees follows the announcement of $1.5bn savings plan revealed after the acquisition of Alcatel-Lucent in 2016.