Telia cuts 900 jobs to localize operations and save SEK 1 billion

Telia Company is reducing its workforce by 900 positions across its Nordic and Baltic markets to cut costs and localize operations.

Layoffs · Source: Reuters

What happened

Telia Company plans to cut approximately 900 positions across all its units and markets. The telecommunications operator aims to complete these reductions by December 31, 2026, pending union negotiations. This move includes both direct employees and external resource consultants. The company hopes to achieve SEK 1 billion in annual gross savings through these cuts and other operational reductions.

The company is also shifting its organizational structure to focus heavily on local markets. Telia will transfer about 220 positions from its common Technology unit directly to specific country units. Leadership states this localization effort will help the company meet evolving customer needs. Telia President and CEO Patrik Hofbauer noted that this will empower country teams and speed up commercial execution, while Group Functions will focus strictly on strategy and governance.

These structural changes will impact multiple countries where Telia operates. Finland will see the largest reduction with 280 cuts out of its 2,450 positions. Sweden follows closely with 260 cuts from a base of 6,000 workers. Norway will lose 150 roles, Lithuania will lose 110, and Estonia will see 100 reductions. An additional 100 cuts will come from other countries where the company has staff.

By the numbers

Why it matters

Job seekers looking at the European telecom sector will find fewer opportunities at Telia in the near term. The company is actively shrinking its central technology teams to empower local country units. This means any future hiring will likely happen at the local country level rather than in centralized corporate functions. The common Technology unit will only retain resources in areas with clear scale benefits, such as security and television services.

The restructuring shows a clear shift toward decentralized operations in the telecommunications industry. By moving roles out of a central hub and into specific countries, Telia is prioritizing local market execution over centralized scale. Other regional operators might adopt similar localized structures to reduce operating costs and improve free cash flow. The company expects these changes to cost SEK 600 million in restructuring charges during the fourth quarter of 2026, but they anticipate a net positive impact on cash flow by 2028.

Who this hits

Central Technology unit employees

Workers in Telia's common Technology unit face significant structural changes this year. About 220 of these roles are moving to country-specific units to support local operations, while others may be eliminated entirely.

External resource consultants

The job cuts are not limited to full-time internal employees. Resource consultants currently make up about three percent of the total positions at Telia and will face a proportional share of the intended reductions.

Nordic and Baltic telecom workers

Professionals in Finland and Sweden face the heaviest impact, with 540 combined job losses expected by December. Workers in Norway, Lithuania, and Estonia will also see reduced local headcount, shrinking the immediate job market in these regions.

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My take

I see this as a clear reminder that companies will always prioritize efficiency and local execution when margins are tight. Telia is framing these 900 job cuts as a localization strategy, but the end result is still a leaner workforce across the board. If you are looking for tech roles right now, pay close attention to companies building up their local teams rather than those relying on heavy centralized corporate units.

Sources

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