Telia, a Swedish telecoms provider, announced Wednesday that it will lose 3,000 positions as part of a cost-cutting initiative aimed at saving some $250 million per year.

The corporation stated that the job losses were part of an organizational change that will allow it to return dividends to shareholders.

The modifications, according to Patrik Hofbauer, “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 business stated that, subject to union agreements, “Telia aims to reduce its headcount by 3,000 positions during 2024”.

Approximately 15% of its staff.

Nearly half of the losses are likely to take place in Sweden, with the remainder concentrated in Estonia, Finland, Lithuania, and Norway, where Telia also operates.
While the layoffs are expected to result in roughly $250 in yearly savings, Telia estimates that the reorganization would cost them an additional $135 million in the second half of the year.

Last year, Telia reported a net profit of approximately $87 million on slightly higher revenue of $8.5 billion.

AFP