Telia plans to cut approximately 900 positions and reduce other operating costs as it targets SEK 1 billion in annual gross savings through a further restructuring of its operations.
Telia’s job cut cover employees and resource consultants across the telecom company’s units. Based on approximately 14,100 positions as of October 1, the planned cuts represent about 6.4 percent of Telia’s total positions.
Telia intends to complete the proposed position reductions and organizational changes by December 31, 2026, subject to customary union negotiations. The company expects approximately SEK 600 million in restructuring charges in Q4 2026, with the cash flow effect occurring mainly in 2027.
Despite these costs, Telia has reiterated its 2026 financial outlook and mid-term financial targets. It expects the proposals to generate a net positive impact on free cash flow, with the full run-rate benefit arriving from 2028.
Telia Job Cuts: Finland Faces Largest Reduction
Finland accounts for the largest proposed reduction, with approximately 280 positions, followed by 260 in Sweden. Together, the two countries represent 540 positions, or 60 percent of the planned cuts.
Norway faces approximately 150 position reductions, Lithuania 110, and Estonia 100.
Finland also faces the largest proportional reduction, at approximately 11.4 percent of its listed positions. Norway follows at 8.3 percent, while Estonia’s proposed reduction represents 7.1 percent.
The figures show that the restructuring will affect countries unevenly. Sweden has the largest position base but a proposed reduction of approximately 4.3 percent, below the group-wide proportion.
SEK 1 Billion Savings Target Includes More Than Job Cuts
Telia’s SEK 1 billion annual gross savings target combines position reductions with additional cuts to its operating cost base. The company has not disclosed how much of the savings will come specifically from employees, resource consultants or other expenditure.
The distinction matters when assessing the financial impact. The savings target cannot be treated as payroll savings alone, and gross savings do not translate directly into an equivalent increase in free cash flow.
Restructuring payments will initially weigh on cash flow, mainly in 2027. Telia expects the proposals to have a net positive free cash flow impact, with the full run-rate benefit from 2028.
The estimated SEK 600 million restructuring charge is equivalent to 60 percent of the targeted annual gross savings. However, these figures alone do not establish a cash payback period because the company has yet to provide a detailed savings timetable or breakdown of the restructuring payments.
Telia will provide further comments on the expected financial impact alongside its Q3 2026 financial report on October 22.
Telia Proposes Transfer of 220 Positions to Country Units
Alongside the planned cuts, Telia proposes transferring approximately 220 positions, primarily from its common Technology unit, to country units.
These transfers are a separate organizational measure from the 900 proposed position reductions. Their purpose is to give local operations additional capabilities and greater responsibility for meeting customer needs and executing commercial decisions.
The proposal builds on Telia’s decentralized, country-led operating model, implemented in December 2024.
Under the latest proposals, Group Functions would focus on strategy, target-setting, governance and follow-up. The common Technology unit would retain resources and expertise in areas where Telia sees clear benefits from scale and shared capabilities, including security and TV services.
For Telia, the organizational change links cost reduction with a shift in decision-making. Country units would gain capabilities, while central functions would concentrate on defined group responsibilities and shared services.
Telia Links Cost Reduction to Continued Customer Investment
President and CEO Patrik Hofbauer said further localization would help Telia become simpler, faster and more efficient while strengthening its position in a competitive telecom market.
The company’s stated objective is to continue investing in products and customer experiences as it lowers its cost base. Hofbauer also acknowledged that the proposals involve difficult decisions and would require support for affected people.
Telia says the operating changes introduced since December 2024 have contributed to increased customer satisfaction, improved financial performance and stronger free cash flow generation. The latest announcement does not quantify those improvements.
The new savings program therefore sets out a measurable cost objective—SEK 1 billion annually—while leaving several execution details to subsequent reporting, including the split between workforce savings and other operating cost reductions.
Telia Maintains 2026 Outlook Despite Restructuring Charges
Telia does not expect the estimated restructuring charges to affect its 2026 financial outlook, which covers like-for-like service revenue growth, adjusted EBITDA growth, CAPEX excluding spectrum and leases, and free cash flow.
The company has also maintained its mid-term financial targets.
The key milestones are now the completion of union negotiations, the intended implementation by December 31, 2026, the mainly 2027 cash outflow, and the full run-rate free cash flow benefit expected from 2028.
For investors, the next financial update should clarify how quickly the proposed 900 position reductions and wider operating cost measures will convert into savings, and how those benefits will support Telia’s profitability and cash generation.
SHAFANA FAZAL