Telia plans to cut approximately 900 positions and reduce other operating costs to achieve SEK 1 billion in annual gross savings. The cuts, representing 6.4% of its 14,100-strong workforce, are expected to be completed by December 31, 2026. Finland faces the largest reduction with 280 positions, followed by Sweden with 260. The company expects SEK 600 million in restructuring charges in Q4 2026, with cash flow impact mainly in 2027. Despite these costs, Telia has reiterated its 2026 financial outlook and mid-term targets, expecting a net positive impact on free cash flow from 2028. The savings target includes more than just job cuts, combining position reductions with additional operating cost base cuts. Telia will provide further comments on the financial impact alongside its Q3 2026 report on October 22.
Alongside the planned cuts, Telia proposes transferring approximately 220 positions from its common Technology unit to country units to enhance local capabilities and decision-making. This move supports its decentralized, country-led operating model implemented in December 2024. Group Functions will focus on strategy and governance, while the Technology unit retains expertise in areas like security and TV services.
Source: Wall Street Journal Markets · Summarized by HeadlinesBriefing