Nokia pulls back on VR and axes 310 jobs

Nokia is giving up on VR – 300 jobs at risk

Nokia is giving up on VR – 300 jobs at risk

The decision will apparently affect up to 310 staff in Nokia Technologies which itself has around 1,090 staff with a lot of them located in Finland, United States, and United Kingdom.

The virtual reality market has grown too slowly for Nokia to stick around, the Finnish company has said, as it ends production of its high-end VR camera, the Ozo.

Although not specifically designed as a health product, the potential of VR technology in health made Nokia confident the OZO would be a hit.

It cites "the slower-than-expected development of the VR market", adding that it will "reduce investments and focus more on technology licensing opportunities".

However, a prohibitively high price (the OZO VR camera initially retailed for $60,000) put many buyers off, and Nokia ended up lowering the price of the camera by 25 percent to $45,000 later that year.

The decision will not affect Nokia's brand and technology licensing nor its patent licensing business - something it retains a firm interest in after striking a lucrative patent deal with Apple.

Nokia has pledged to support existing customers but development has been halted.

However, there's little balm for the employees soon to be axed.

The Nokia Technologies unit, which employs around 1,090 people and has been responsible for the development of Nokia's VR camera "OZO", will instead redirect efforts towards digital health, according to a statement today.

Nokia's patent business is a successful core part of the business, and so will be left untouched, likely to the relief of investors.

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.

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