IoT module company u-blox outlined an intention to phase out its loss-making cellular business to fully focus on products using satellite positioning technology, Wi-Fi and Bluetooth.

The Switzerland-based company’s cellular division employs 200 people and posted an adjusted EBIT loss of CHF15 million ($16 million) in H1 2024.

In a statement, u-blox explained exiting the cellular IoT business is the “most viable course of action to ensure the company’s long-term strategic focus and operational efficiency”.

The move follows a strategic review where it explored selling the division.

u-blox provides chips, modules and IoT services for a wide range of use cases, including within industrial and telematics segments.

CEO Stephan Zizala said: “Our efforts to find a viable path forward for the cellular business did not pan out, including exploring a potential sale, leading us to the decision to phase out this business. We will do our utmost to support our employees, customers and partners impacted by this decision.”

He added the “strategic shift will enable us to unlock even greater potential within the positioning technology market and accelerate the development of cutting-edge solutions for our customers.”

The company expects to eliminate around CHF30 million in EBIT losses a year.