Telia to cut 900 jobs in push to save 1 billion crowns annually

Telia, the Swedish telecoms group, has announced plans to cut around 900 jobs, constituting approximately 6% of its workforce, in an effort to save 1 billion Swedish crowns annually. These cuts will impact employees and resource consultants, aiming to reduce the company's operating cost base. The restructuring is expected to be completed by December 31, subject to union negotiations.

Telia anticipates restructuring charges of about 600 million crowns in the fourth quarter of 2026, with the cash impact primarily occurring in 2027. The company does not expect the charges to affect its 2026 financial outlook or its mid-term financial targets. The proposals are anticipated to have a net positive impact on Telia's free cash flow from 2028, once the full benefits are realized.

Detailed financial impact information will be provided in the company's third-quarter report on October 22. Finland is projected to bear the largest reduction, losing about 280 out of 2,450 positions, followed by Sweden with 260 out of 6,000 positions. Norway will see a reduction of 150 positions from its 1,800 workforce, while Lithuania and Estonia will lose 110 and 100 positions, respectively.

Other countries where Telia operates have around 100 positions, with no specific reductions listed. The company currently employs approximately 14,100 people, with resource consultants accounting for about 3% of the total and planned reductions. Telia intends to consolidate some 220 positions, primarily from its common technology unit, to its country units.

This restructuring aims to empower countries, maximize the potential of the common technology unit, and enhance Telia's competitive edge in a highly competitive market. CEO Patrik Hofbauer stated that the company acknowledges the plan will require difficult decisions and support for its employees. The restructuring follows Telia's introduction of a customer-led operating model in December 2024, which has led to increased customer satisfaction and improved financial performance, particularly in free cash flow.