Telia Announces 3,000 Job Cuts in Cost-Cutting Drive
Swedish telecoms giant Telia has announced plans to cut 3,000 jobs, or 15% of its workforce, as part of a major cost-cutting drive aimed at generating approximately $250 million in annual savings.
The company, which operates in several European countries, including Sweden, Estonia, Finland, Lithuania, and Norway, said the job cuts are part of an organisational overhaul designed to simplify its operations and improve decision-making. According to Telia’s CEO, Patrik Hofbauer, the changes will enable the company to return dividends to investors and grow its business.
The job cuts are expected to be completed by 2024, with nearly half of the reductions falling in Sweden. The remaining cuts will be spread across the other countries where Telia operates.
While the cost-cutting measures are expected to generate significant savings, Telia warned that they will also result in additional charges of $135 million in the second half of the year. The company posted a net profit of $87 million last year on revenue of $8.5 billion.
Telia’s decision to cut jobs comes as the telecommunications industry faces intense competition and pressure to reduce costs. The company’s move is likely to be closely watched by investors and industry observers, who will be keen to see how the cost-cutting drive affects Telia’s financial performance and competitiveness in the market.
