Telia to cut 3,000 staff
September 4, 2024
Telia, the Sweden-based telecoms operator, has announced a ‘change programme’ that it says will simplify its operations by implementing a new operating model with streamlined processes and improved ways of working, which will lead to a more customer-focused organisation, while also resetting the company’s cost base through an intended reduction of 3,000 staff during 2024 – around 15 per cent of its workforce.
As part of the programme, Telia plans to streamline and reshape its organisational structure to equip its country units with additional capabilities transferred from the current Common Products & Services (CPS) and Group Strategy & Commercial (GSC) organisations. By decentralising and moving part of the competence from common to country units, Telia believes the latter will be able to better serve customers and capture growth based on local market needs, while reducing overlaps and simplifying interfaces in day-to-day operations. After the intended transfer of competence to country units, the remaining part of the common technology and product unit would retain expertise in IT, networks and product management.
Patrik Hofbauer, Telia Company President and CEO, commented: “This is a tough decision, but one that is necessary to ensure the long-term success of Telia. Together with the Board and my leadership team, we are set to eliminate barriers to execution and reduce layers of organisational complexity so that we can better serve our customers. I envisage that this intended approach will not only result in a Telia that is simpler and faster in decision-making and commercial execution, but also help us to grow our business and generate enough cash so that we can make necessary investments and cover our dividend, as we remain committed to our dividend policy. While we will support the employees who will eventually leave Telia, we will also make this company a better place to work for those employees who remain with us.”
The programme is expected to result in restructuring charges of approximately SEK 1.4 billion (€0.12bn) in H2 2024, with expected annual savings of at least SEK 2.6 billion. The estimated restructuring charges are not expected to impact Telia’s full-year financial outlook statements for 2024.
All changes are subject to customary union negotiations and Telia will provide more information about the planned workforce reductions as soon as those negotiations are finalised.