Nordic and Baltic telecommunications giant Telia has announced plans to cut the jobs of around 3,000 of its employees, including 500 in Finland.
In a press release, the Stockholm-based company said that, following negotiations with employee representatives, it plans to reduce its workforce by around 3,000 people across all of its units and regions. Those regions include Finland, Sweden, Norway, Lithuania and Estonia. The firm currently employs around 4,000 people in Finland.
Including consultants, the company estimated it will cut a total of around 635 jobs in Finland this year. The firm said the plans also involve the creation of 35 to 40 new positions in Finland.
Telia said it is aiming to reduce "layers of organisational complexity" in order to improve customer focus "with additional capabilities for faster decision-making and improved commercial execution".
The measures are part of a plan to save around 122 million euros (1.4bn Swedish Krona) in the second half of this year, with an anticipated annual savings of at least 228 million euros (2.6bn Swedish Krona), according to the company.
According to Telia Finland's CEO, Heli Partanen, the downsizing effort will enable profitable growth for the firm, increase its investment abilities and improve customer satisfaction.
CEO Hofbauer: "Tough" but necessary decision
Patrik Hofbauer, Telia's president and CEO, said the decision to carry out the measures was "tough" but necessary to ensure Telia's long-term success.
"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," Hofbauer said in the release.
The company plans to shed around 1,400 jobs in Sweden where it employs about 8,500 people. Around 245 of its 2,170 workers in Norway are at risk of losing their jobs, while 400 out of 2,900 employees in Lithuania are set for layoffs. In Estonia, job cuts of around 160 out of its 1,550 workers are also planned.
Telia also plans to cut 160 jobs of its roughly 250 workers and consultants in other regions.
Telia said it would provide more information about the planned workforce reductions after the finalisation of union negotiations.
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