The telecom operator will reduce external and internal employees by roughly 850 including 650 in Sweden.
Telia is targeting to eliminate 8 percent of jobs in Sweden or around 3 percent of total workforce because the operational expenses are too high in Sweden.
The initiatives are expected to impact costs already in the second half of 2017 by a reduction of approximately 5 percent in Sweden year on year.
“We have also initiated medium term structural initiatives that will drive further cost reductions supporting EBITDA in 2018 and 2019. This is expected to result in a reduction of the targeted cost base of at least 3 percent 2018,” said Telia Company CEO Johan Dennelind.
Telia Company is expecting pressure on its legacy revenues and falling one-off revenues from fiber.
Telia Company net sales fell 6.3 percent to SEK 19,801 million, while Adjusted EBITDA dipped 4.6 percent to SEK 6,095 million and adjusted EBITDA margin improved to 30.8 percent from 30.2.
Net income fell to SEK 308 million from SEK 3,902 million.
Capex increased to SEK 5,180 million and the Capex-to-service revenue ratio to 30.3 percent from 20.9. Capex excluding license and spectrum fees increased to SEK 4,718 million (3,773) and the CAPEX-to-service revenue ratio, excluding license and spectrum fees increased to 27.6 percent (20.9).
“We struggle with permit and intermediary related issues in connecting households to our fiber network. Some of the roll out challenge is also related to shifts in the market dynamics, which have led to longer delivery processes,” Johan Dennelind said.