Telia Company Adjusts Operations to Enhance Profitability
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Telia Company Restructuring for Efficient Operations
Telia Company, a leading telecommunications provider, is embarking on a significant change program aimed at transforming its operational model. This initiative is designed to simplify operations across the Nordic and Baltic regions and enhance its focus on local customer needs. A notable aspect of this transformation is the planned reduction of personnel by approximately 3,000 throughout 2024.
Impact on Lithuania
In Lithuania, the plan includes a reduction of around 400 jobs. This involves roughly 200 positions at Telia Lietuva, the primary entity in Lithuania, with the remaining cuts affecting Telia Global Services Lithuania, a subsidiary wholly owned by Telia Company.
Objectives of the New Structure
This restructuring aims to maximize the potential of Telia's network infrastructure and its service offerings, which is anticipated to boost efficiency and profitability. By decentralizing many common activities, the decision-making process will now be reinforced at the country level. This approach allows the organization to be more agile and responsive to customer requirements while still benefiting from overarching regional agreements and economies of scale.
Leadership Insights
Giedr? Kaminskait?-Salters, CEO of Telia Lietuva, commented on these developments: "The evolution of our business model opens up avenues for making strategically vital decisions in Lithuania. Embracing digitization, phasing out outdated systems, and leveraging advancements in artificial intelligence (AI) are pivotal for our growth. Unfortunately, this evolution also necessitates optimizing our workforce, leading to a planned reduction of 200 positions by year-end. We are committed to supporting our employees through this transition, providing them with appropriate compensation and assistance during consultations with trade union representatives."
Future Expectations
Engagements with trade unions are expected to conclude soon, leading to a new organizational framework due to be implemented by December 2024. Currently, around 1,900 employees are part of the Telia Lietuva team, making the forthcoming adjustments significant.
Financial Implications
The restructuring process is predicted to incur charges of approximately EUR 1 million but is projected to yield annual savings of around EUR 6.3 million, thus reaffirming the company's focus on financial sustainability and operational efficiency.
Frequently Asked Questions
What is the main reason behind Telia Company's restructuring?
The restructuring aims to simplify operations and enhance profitability by decentralizing decision-making and focusing on local customer needs.
How many jobs will be cut in Lithuania?
Approximately 400 positions are expected to be eliminated, with around 200 at Telia Lietuva.
What is the anticipated timeline for these changes?
The expected new organizational structure is set to be implemented by December 2024.
How much will the restructuring cost, and what are the expected savings?
The restructuring is anticipated to cost about EUR 1 million, with expected annual savings of EUR 6.3 million.
Who is the CEO of Telia Lietuva?
The CEO of Telia Lietuva is Giedr? Kaminskait?-Salters, who is actively involved in guiding the company's transformation.
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