Telia targets SEK 1 billion in annual savings and about 900 fewer positions

Telia said Monday it intends to reduce about 900 positions and aim for SEK 1 billion in annual gross savings while shifting more work into country units, a plan still subject to union negotiations.

What Telia proposed

Telia Company said Monday it intends to cut about 900 positions across the group and target SEK 1 billion in annual gross savings as it pushes more operating responsibility into its country units. The proposal also moves roughly 220 roles, mainly from the shared Technology unit, into those country organizations.

The company framed the plan as the next step after a customer-led operating model introduced in December 2024. President and CEO Patrik Hofbauer said Telia wants to empower its countries, get more from the common Technology unit and other group functions, and keep investing in products and customer experience. Under the proposals, shared Technology would still keep domains with clear scale and synergies, including security and TV services.

The localization and the position reductions are targeted for completion by Dec. 31, subject to customary union negotiations. Until those talks conclude, the 900 figure and the country breakdown remain Telia's intended plan, not a finished headcount cut.

The cost and cash-flow math

Telia expects restructuring charges of about SEK 600 million in the fourth quarter of 2026, with most of the cash effect landing in 2027. It said those charges are not expected to change its 2026 financial outlook for like-for-like service-revenue and adjusted EBITDA growth, capital expenditure excluding spectrum and leases, or free cash flow. Mid-term financial targets were also reiterated.

Management said the proposals should have a net positive effect on free cash flow, with the full run-rate benefit from 2028. Telia plans to say more about the financial impact with its third-quarter 2026 report on Oct. 22.

Where the cuts land

As of Oct. 1, Telia counted about 14,100 positions including resource consultants. The intended reductions by Dec. 31 are about 260 in Sweden, 280 in Finland, 150 in Norway, 110 in Lithuania and 100 in Estonia. Resource consultants make up roughly 3% of both the starting headcount and the planned cuts.

Finland's intended reduction is the largest absolute country cut even though Sweden remains the biggest workforce. That geography matters for Nordic labor talks; it does not, by itself, prove which markets will see the deepest service changes.

Why it matters for investors

For investors, Monday's release is a restructuring proposal with hard krona and headcount numbers attached — not a completed labor action and not a change to the 2026 outlook Telia just reiterated. The SEK 1 billion savings target and the SEK 600 million charge set the near-term P&L and cash markers; the union process and the Oct. 22 update will show how much of the plan survives negotiation.

The Wall Street Journal separately described the plan as cutting about 900 jobs to save around $100 million a year. That dollar framing is a reporter's paraphrase of Telia's own SEK targets, not a company figure, and it does not replace the SEK 1 billion savings number Telia published.