Finland-based Sailfish OS maker and phone vendor Jolla today announced its decision to cut jobs and file for debt restructuring as it could not complete its latest financing round.
Jolla was planning to mobilize additional funds through its latest financing round in November. Since it could finalize fresh financial deals, the entire funding program has been postponed.
The filing for a debt restructuring program in Finland is aimed at ensuring the continuity of its loss making business. The debt restructuring program filed in Helsinki is likely to support Jolla to secure the future of its business and get more time to arrange the future financing of the company.
“Jolla will also temporarily lay off a big part of its personnel,” said the company, without specifying the number of employees.
Jolla was founded four years ago. It developed Sailfish OS, an own mobile operating system, and launched two mobile devices, and raised $50 million to finance the operation.
Last autumn, Sailfish OS reached commercial maturity and now the company is ready to license it to commercial partners. Jolla’s aim is to offer Sailfish OS to different partners who want a tailored operating system to support their own businesses.
Antti Saarnio, co-founder of Jolla, said: “Our operating system Sailfish OS is in great shape currently and it is commercially ready. We need to move from a development phase into a growth phase. I believe that through this program Jolla can turn its business to be profitable in the future. Sailfish OS is a very valuable asset and worth fighting for.”
Jolla with the availability of small funds aimed to take on big corporates such as Samsung, Apple, BlackBerry, which have their own operating system.
Baburajan K
editor@telecomlead.com
