Telia CEO Patrik Hofbauer today announced its decentralized country-led operating model aimed at achieving annual savings of SEK 2.6 billion.
Telia will shift operational responsibility to country units (Sweden, Finland, Norway, Lithuania, and Estonia) to enhance responsiveness to local market needs.
Telia will empower each country unit to handle commercial planning, execution, customer engagement, and growth opportunities.
Telia, as part of its strategy to enhance cost optimization and efficiency, will reduce the workforce by 3,000 positions, achieving annual savings of SEK 2.6 billion.
Telia aims to streamline interfaces between central units and country organizations to improve efficiency and collaboration.
Telia will transition IT, analytics, product development, customer contact, and strategy resources from central units to local teams.
Telia will retain centralized strategic capabilities in Technology and Group functions to provide scalability and specialized expertise.
Telia said it will refocus the roles of Group Finance, Corporate Affairs, People & Culture, and Communications to better support the decentralized model. Telia will simplify organizational structures to foster collaboration between central and local units.
Telia will align operations to better meet customer expectations and improve service quality. Telia will leverage local insights to tailor offerings and drive customer satisfaction.
Telia aims at managing restructuring costs effectively, with a reduced Q4 2024 estimate of SEK 1.3 billion. Telia will maintain focus on long-term financial goals, including service revenue growth, adjusted EBITDA growth, and free cash flow stability.
Telia CEO said it aims to build on existing network and service strengths to secure a competitive edge. It will also prioritize investments that deliver sustainable growth and shareholder returns. Telia CEO aims at fostering high-performing teams by delegating decision-making authority to local units. Telia will also enhance collaboration and engagement through simplified workflows and redefined roles.
