Telia to Cut 3,000 Jobs, Sees SEK 2.6 Bln Annual Savings
Restructuring Vendor Financing Program
Telia Company, a Swedish telecommunications company, has announced plans to cut 3,000 jobs as part of a cost-saving initiative. The company expects to achieve annual savings of SEK 2.6 billion (approximately $250 million) through these measures.
In addition to job cuts, Telia is also restructuring its vendor financing program. The company has been providing financing to vendors to support sales of its products and services. However, Telia has decided to scale back this program and focus on its core business.
Impact on Employees
The job cuts will affect employees across Telia's operations, including Sweden, Finland, Norway, Denmark, and the Baltics. The company has not yet disclosed the specific locations or positions that will be impacted.
Telia has stated that it will provide support to affected employees, including severance packages and outplacement services. The company is also working with trade unions to ensure a fair and transparent process.
Financial Impact
Telia expects to incur restructuring costs of SEK 1.3 billion (approximately $125 million) in 2023. However, the company believes that the cost savings from the job cuts and vendor financing program restructuring will outweigh these costs in the long run.
Telia has been facing financial challenges in recent years, due to increased competition and declining revenues. The company has been implementing a number of cost-cutting measures to improve its financial performance.
Market Reaction
The news of Telia's job cuts and vendor financing program restructuring has been met with mixed reactions from the market. Some analysts believe that the measures are necessary to improve the company's financial performance. Others have expressed concern about the impact on employees and the company's customers.
Telia's stock price has fallen slightly following the announcement. However, the company's long-term prospects will depend on its ability to successfully implement its cost-cutting measures and improve its financial performance.
Additional Information
- Telia Company is a leading telecommunications provider in the Nordic and Baltic regions.
- The company has over 20 million customers and operates in 10 countries.
- Telia's revenue in 2022 was SEK 101.4 billion (approximately $9.7 billion).
For more information, please visit Telia Company's website: https://www.teliacompany.com/.
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