Telia Company Restructures for Improved Operations
Telia Company, a prominent telecommunications provider, is initiating a major change program aimed at revamping its operational model. This initiative seeks to streamline operations across the Nordic and Baltic regions while enhancing its focus on the needs of local customers. A key element of this transformation involves a planned reduction of approximately 3,000 jobs throughout 2024.
Effects on Lithuania
In Lithuania, the plan includes cutting around 400 jobs. This will affect roughly 200 positions at Telia Lietuva, the main entity in the country, while the remaining reductions will impact Telia Global Services Lithuania, a wholly owned subsidiary of Telia Company.
Aims of the New Structure
The goal of this restructuring is to fully leverage Telia's network infrastructure and service offerings, which is expected to enhance efficiency and profitability. By decentralizing many common functions, decision-making will be strengthened at the country level. This strategy enables the organization to be more agile and responsive to customer needs while still benefiting from regional agreements and economies of scale.
Insights from Leadership
Giedr? Kaminskait?-Salters, the CEO of Telia Lietuva, shared her thoughts on these changes: "The evolution of our business model opens up opportunities for making strategically important decisions in Lithuania. Embracing digitization, retiring outdated systems, and utilizing advancements in artificial intelligence (AI) are essential for our growth. Unfortunately, this evolution also requires us to optimize our workforce, resulting in a planned reduction of 200 positions by the end of the year. We are dedicated to supporting our employees during this transition by providing appropriate compensation and assistance throughout consultations with trade union representatives."
Looking Ahead
Discussions with trade unions are expected to wrap up soon, leading to a new organizational framework that is set to be implemented by December 2024. Currently, there are about 1,900 employees on the Telia Lietuva team, making these upcoming changes quite significant.
Financial Considerations
The restructuring process is expected to incur costs of around EUR 1 million, but it is projected to generate annual savings of approximately EUR 6.3 million, reinforcing the company's commitment to 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.
