Sweden’s telecom company Telia to cut 3,000 jobs to reduce expenses

Swedish telecommunications company Telia plans to eliminate 3,000 jobs, representing ~15% of its total workforce, to reduce expenses and targets SEK 2.6B in annual savings.

The job cuts will impact all units of the company and result in restructuring charges of SEK 1.4B this year, with no impact on Telia’s outlook.

Out of 3,000 jobs impacted, 1400 will be in Sweden and the rest in other countries. YTD, Telia has already reduced its headcount by 455 positions and plans more cuts to be effective by December 1, 2024.

“..we are set to eliminate barriers to execution and reduce layers of organizational complexity so that we can better serve our customers.” Telia President and CEO Patrik Hofbauer said.

The move comes as Telia wrestles stiff competition from rivals in its core markets.

Separately, the company also announced restructuring of its vendor financing program and reduction in its volume by ~50% during H2 2024. The restructuring is estimated to result in reduced cash flow volatility over time and to have limited effects on net profit, the company said.