u-blox’s cellular business currently has over 200 employees and generated revenue of US$29.5 million and adjusted EBIT loss in excess of US$16.4 million in H1 2024.

The company claims that the move will eliminate at least US$32.8 million in EBIT annual losses

According to u-blox, the change positions the company as a leading and dedicated provider of GNSS (global navigation satellite system) semiconductor solutions in a dynamic and growing market, while retaining its value creative short-range business.

In its strategic review, u-blox decided to continue to improve the performance of its short-range business, which comprises Wi-Fi and Bluetooth modules.

"By further focusing on the Locate business, u-blox will be better positioned to drive innovation, leverage its unique technology assets, and address expanding opportunities within the global positioning market, including autonomous vehicles, industrial IoT, and tracking applications," u-blox said in a statement to the market.

"After careful evaluation, u-blox has concluded that phasing out the cellular business is the most viable course of action to ensure the company’s long-term strategic focus and operational efficiency."

u-blox says it will initiate the transition immediately, with the majority of the cost reduction actions are expected to be executed in 2025.

“This 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,” said Stephan Zizala, CEO of u-blox.

“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.”