Telia CEO: Hard to look colleagues in the eye

Telia needs to become more efficient, simplify its working methods and let the regional operations manage themselves more, according to CEO Patrik Hofbauer. This will be achieved with 3,000 fewer employees. It was a very difficult and tough decision to make, he says about the cutbacks.

» Updated:

» Published:

Telia CEO: Hard to look colleagues in the eye
Photo: Jessica Gow/TT

Share this article

That 15 percent of the workforce will be laid off came as a cold shower for the employees at Telia on Tuesday morning. Patrik Hofbauer took office as CEO of Telia on February 1.

It's clearly tough to look colleagues in the eye when you know that 3,000 positions will disappear. But we are fully agreed in the board and corporate management that this is absolutely the right thing to do, he says.

The employees who remain will get clearer roles and responsibilities. The individual countries where Telia has operations will be able to decide more for themselves.

We see that now we want to decentralize and put much greater responsibility on the roles close to the customer, he says.

"Faster and better"

The new organization is expected to be in place by December 1, if everything goes according to management's plan. Hofbauer says that the decision was not made because they see dark clouds on the horizon.

We have a very fine business. We have strong positions in the markets where we operate.

The cutbacks come in a year when Telia has performed strongly on the stock exchange, and an explicit goal is to be able to maintain dividend payments. Hofbauer admits that the brand may take a short-term hit.

But I believe we will become a faster and better company and more appreciated by the employees who remain, he says.

The entire business

Customers should not notice too much of the changes, according to the Telia top executive.

It's not so much about making changes where the customer is, he says.

Whether there will be severance packages, if the reduction can be solved through natural attrition, and how, for example, Telia stores out in the country will be affected is too early to say.

It will affect our entire business, but exactly how it will be in detail, I cannot answer now, says Patrik Hofbauer.

Tags

Author

TTT
By TTEnglish edition by Sweden Herald, adapted for local and international readers

More news

Fed Lowers Interest Rate by 0.25 Points to 4.00-4.25 Percent

Fed Lowers Interest Rate by 0.25 Points to 4.00-4.25 Percent

China Urges Tech Giants to Halt Nvidia AI Chip Purchases

China Urges Tech Giants to Halt Nvidia AI Chip Purchases

Jerry Greenfield Departs Ben & Jerry's, Citing Silencing by Unilever

Jerry Greenfield Departs Ben & Jerry's, Citing Silencing by Unilever

Avanza Introduces Digital Trading on London Stock Exchange

Avanza Introduces Digital Trading on London Stock Exchange

Uber Introduces Safari Tours in Kenya's Nairobi National Park

Uber Introduces Safari Tours in Kenya's Nairobi National Park

Swedish Inflation Expectations Rise Slightly in Latest Survey

Swedish Inflation Expectations Rise Slightly in Latest Survey

Sweden's Unemployment Rate Stays High in August

Sweden's Unemployment Rate Stays High in August

Stockholm Stock Exchange Sees Modest Gain Led by H&M

Stockholm Stock Exchange Sees Modest Gain Led by H&M

Verisure Returns to Stockholm Stock Exchange with Major Listing

Verisure Returns to Stockholm Stock Exchange with Major Listing

Oracle and Partners to Acquire TikTok's US Operations

Oracle and Partners to Acquire TikTok's US Operations

Taco Bell to Open First Sweden Location in Stockholm Winter 2025

Taco Bell to Open First Sweden Location in Stockholm Winter 2025

Retail Outlook Brightens as Consumer Spending Set to Boost Economy

Retail Outlook Brightens as Consumer Spending Set to Boost Economy

SBAB Predicts Stable Housing Prices Despite Autumn Interest Rate Cut

SBAB Predicts Stable Housing Prices Despite Autumn Interest Rate Cut

Asian Stock Markets Open Mixed Amid Fed Rate Cut Speculation

Asian Stock Markets Open Mixed Amid Fed Rate Cut Speculation

Microsoft Announces $30 Billion Investment in UK Cloud and AI Infrastructure

Microsoft Announces $30 Billion Investment in UK Cloud and AI Infrastructure

US Stock Market Sees Slight Decline Amid Retail Sales Data

US Stock Market Sees Slight Decline Amid Retail Sales Data

Trump Extends TikTok Deal Deadline to December 16

Trump Extends TikTok Deal Deadline to December 16

NHTSA Investigates 174,000 Tesla Cars Over Door Handle Issues

NHTSA Investigates 174,000 Tesla Cars Over Door Handle Issues

Ford Cuts 1,000 Jobs at Cologne Factory Amid Weak Electric Car Demand

Ford Cuts 1,000 Jobs at Cologne Factory Amid Weak Electric Car Demand

Swedish Households Shift from Borrowing to Diverse Savings Strategies

Swedish Households Shift from Borrowing to Diverse Savings Strategies