Nokia Oyj (ADR) (NYSE:NOK) has announced that it will be cutting down 400 jobs in its home country of Finland. The Finnish network gear maker also has begun the strategic evaluation of its digital health business.
Finland will see 425 job cuts from Nokia this year. According to a report, the reductions are a part of the $1.3 billion global cost-savings plan from the company that was announced after it acquired the Franco-American rival Alcatel-Lucent in 2016. Currently, the company employs 102,800 people globally and 6,300 employees in Finland alone.
Nokia To Strategically Review Its Digital Health Business
Nokia Technologies unit’s one part incorporates digital health and the company is looking for growth opportunities in these areas where it is facing tough competition from the other mainstay telecom network gear businesses. In its statement on the recent review, Nokia said that the evaluation may or may not lead to any transaction or any other changes. The review of the digital health business will include evaluation of hybrid watches, digital health devices, and scales.
The Finnish company cleared the fact that brand partnerships, patent business, and technology licensing units are not going to be a part of the review. The company bought Withings from France in 2016 which develops activity trackers and thermometers for $212 billion. It was an initial move by the tech-company in the health market.
The company recently said that there is no direct connection between the job reductions and strategic review. According to Nokia the job reductions are a part of the company’s ongoing 2016 to 2018 synergy and cross savings across the businesses. Ever since the company has acquired Withing, Nokia Technologies have made connected health as one of the primary areas of its working.
THE MORNING REPORT
Start your workday the right way with the news that matters most.
According to a spokesperson of Nokia, his company has taken an entrepreneurial approach to running the company while exploring different ventures in new industries. The spokesperson said that the company continues to believe in the promise of the digital health sector as well as the Nokia digital health product line.