Swedish telecom giant Telia to shelve 3,000 jobs in cost-cutting drive

Swedish telecoms operator Telia said Wednesday it will cut 3,000 jobs as part of a cost-cutting drive that aims to generate approximately $250 million in annual savings.

The company said the job cuts were part of an organisational overhaul that will enable it to return dividends to investors.

Chief executive Patrik Hofbauer said the changes "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".

The company said that subject to union negotiations, "Telia aims to reduce its headcount by 3,000 positions during 2024", or about 15 percent of its workforce.

Nearly half of the cuts are expected to fall in Sweden, with most of the rest in Estonia, Finland, Lithuania and Norway where Telia also has operations.

While the cuts are expected to eventually result in approximately $250 in annual savings, Telia said it expects the restructuring will cost it $135 million in additional charges in the second half of the year.

Telia posted a net profit of roughly $87 million last year on marginally higher revenue of $8.5 billion.