The operator reckons getting rid of 15% of its workforce across its opcos will reduce operating expenses by about €229m
The Swedish operator group Telia intends to shed 3,000 jobs by the beginning of December. The lion’s share, about 1,400 will be in Sweden and the rest split between among Estonia, Finland, Lithuania and Norway. The operator reckons this will cut its operating costs by about SWK2.6 billion (€229 million).
However, this financial gain will be offset by other restructuring costs of about €122 million in the second half of 2024.
The CEO of Telia, Patrik Hofbaue, told Reuters, “This is a tough decision, but one that is necessary to ensure the long-term success of Telia. We need to be much … simpler in the way we operate, faster on decision making, and also when it comes to commercial execution, and we need to create more margin … We are changing the operating model … we are putting much more responsibility and accountability into the countries, because there we meet our customers.”
Reuters says Telia, which provides TV channels and telecoms in the countries listed above has suffered a loss of income in its media business due to inflation resulting in less spent on advertising.
In 2021, when Allison Kirkby, now CEO of BT Group, was CEO at Telia, she launched a multi-year restructuring plan to slash costs over four years by laying off staff every year, divesting assets and streamlining operations.