Telia, the Swedish telecom giant, announced plans on Wednesday to cut 3,000 jobs as part of a major cost-saving initiative. The company aims to save around $250 million annually through this move.
This job reduction is part of a broader restructuring effort to streamline the organization and ensure it can continue to pay dividends to investors. Telia’s CEO, Patrik Hofbauer, emphasized that these changes will make the company more agile in decision-making and business operations, while also enabling growth and generating the necessary cash flow to fund investments and uphold their dividend policy.
Telia is targeting a 15% reduction in its workforce, with half of the job cuts expected in Sweden and the rest spread across Estonia, Finland, Lithuania, and Norway. These reductions are subject to union negotiations.
While the company expects significant savings in the long run, the restructuring is set to incur $135 million in additional costs later this year. Last year, Telia reported a net profit of $87 million on revenues of $8.5 billion.
