CEO Patrik Hofbauer acknowledged the difficult nature of the decision but emphasized its necessity for Telia’s long-term success.”This is a tough decision, but one that is necessary to ensure the long-term success of Telia,” CEO Hofbauer said. “We need to be much more simpler in the way we operate, faster on decision making, and also when it comes to commercial execution, and we need to create more margin,” Hofbauer said in an interview.
“We are changing the operating model … we are putting much more responsibility and accountability into the countries, because there we meet our customers,” he told Reuters.
Job cuts to impact employees in Sweden and outside
The job cuts will impact approximately 1,400 employees in Sweden, with the remaining reductions distributed across other countries.
Telia, which employs around 18,000 people and 1,370 consultants, plans to complete the layoffs by December 1. The company has been implementing a multi-year restructuring plan since 2021, focusing on cost reduction through layoffs, asset divestment, and operational streamlining.
Hofbauer highlighted the need for increased efficiency, faster decision-making, and improved commercial execution to enhance profitability. He also emphasized the importance of decentralizing operations to better serve customers at the local level.
Telia’s Capital Market day on September 26 will feature a presentation of a new three-year strategic plan. Hofbauer, who assumed the role of CEO in February, brings extensive experience in the TV and telecom industries.
Analysts have noted that the scale of the job cuts is significant for the industry but may be a necessary step given the recent leadership change and economic challenges.
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