News

The job cuts come amongst a raft of cost-cutting measures that have been ongoing since the start of 2021

This week, the announcement of Telia’s lacklustre Q4 results has been accompanied by an acceleration of job cutting plans, with the company set to reduce its headcount by 1,500 this year.

According to the company’s earnings statement, the first 1,000 of these jobs will be slashed in Q1 this year, with the remaining 500 expected to be cut by the end of the year.

The company currently employs around 20,000 full time staff in various markets.

Telia has been attempting to cut costs significantly for a number of years now, in 2021 laying out a new strategic plan that included job cuts, asset divestiture, and operational streamlining.

At the time, the company said it would aim to cut 1,000 jobs a year until 2025, but now the macroeconomic environment, including rising energy prices and inflation, is forcing the company to accelerate its strategy.

Struggling under the weight of $2 billion in non-financial impairments related to its Norwegian and Finnish units, this year Telia noted a net loss of roughly $1.8 billion –a stark contrast to the profit it recorded for the same period a year ago.

“We are transforming a large, complex business in a challenging market and there are no shortcuts to success. We have known from the start that achieving our ambitious goals demands focus, discipline and perseverance,” said Telia CEO Allison Kirkby. “However, having returned the company to growth, expanded our 5G networks, passed our investment peak and built the foundations for better operational momentum and cash conversion going forward, I remain confident we are on the right track.”

Also in the news:
UK Space Agency to invest £50m in satellite comms
Neos Networks announces fibre milestones in Liverpool, Birmingham, Manchester, and London
American Tower rumoured to be eying Cellnex takeover