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Best known for durable phones with long battery life, Nokia has announced that it will be making several changes to reduce costs. The OZO virtual reality camera will be the first of the expected cuts. Patent licensing and health products will receive higher priority for Nokia and up to 310 employees may be laid off.
There are currently 1090 employees at Nokia Technologies, making the lay offs account for almost 35% of the division. Finland, United States, and United Kingdom employees will account for the majority of the reductions in staff.
"Nokia Technologies is at a point where, with the right focus and investments, we can meaningfully grow our footprint in the digital health market, and we must seize that opportunity," states Gregory Lee, president of Nokia Technologies. Lee affirms that Nokia remains "committed to providing the needed support to those affected."
Virtual reality is still a growing industry, just not growing fast enough for Nokia. Instead of working on VR cameras, digital health products such as fitness trackers, blood pressure monitors, and smart scales will be a focus. Nokia acquired Withings for $200 million a year and a half ago to enter the digital health business. Withings built the aforementioned products but has since been rebranded under the Nokia name.
In addition to patent licensing and health-related products, Nokia Technologies will continue to develop 5G and Internet of Things technologies.