Nokia might be regretting its acquisition of Withings in 2016. Two years after spending nearly $200 million on the connected devices manufacturer, the entire digital health business could be shut down or sold off. All that’s known at this time is that Nokia’s future in health and wellness is anything but certain.
This week the Finnish company announced a “strategic review” of the division that develops consumer and enterprise products including smartwatches, scales, and more.
As part of the process, Nokia will let go of up to 425 employees. The jobs will be cut throughout 2018.
It’s not too surprising considering the wearables market isn’t as popular as it was when Nokia entered. Despite the assets Withings brought over, few companies had achieved access. But the idea was that Nokia could gain momentum within the medical industry. That never happened, and in recent quarters the company’s been forced to take major write-downs from the division.
Last year the company laid off more than 300 employees and committed additional resources to its digital health business. It’s been less than six months, and now that same division will be restructured in some way.