Telia will cut around 900 positions across the group as part of a restructuring targeting SEK 1 billion in annual gross savings, with completion set for 31 December 2026.

The Swedish operator confirmed the reductions will affect both employees and external consultants. Beyond the headline job cuts, Telia plans to transfer roughly 220 positions — mainly from its central Technology unit — into its country operations, accelerating a localisation strategy that Hofbauer frames as doubling down on what already works.

The company expects the programme to trigger charges of around SEK 600 million in the fourth quarter of 2026, with most of the cash impact landing in 2027. The timeline remains subject to union negotiations, a standard condition for large-scale workforce changes in the Nordic markets where Telia operates.

What changes at group level?

Under the proposals, Telia's central group functions will narrow their remit to four core tasks:

• strategy
• setting targets
• governance
• monitoring performance

That leaves execution increasingly in the hands of country operations, which will absorb the 220 transferred roles. The central Technology unit stays in place but with a sharper mandate, according to the CEO.

"We must always become even simpler, faster and more efficient in everything we do," said Telia President and CEO Patrik Hofbauer. "We want to empower our countries more, get the utmost from our common Technology unit and other Group Functions, and sharpen Telia's edge in a very competitive market."

How does Telia frame the cuts?

Hofbauer positioned the restructuring as a continuation of an existing transformation rather than a distress measure. "We're building the future Telia. Our efforts so far have put us on the right track, and further localisation means doubling down on what we know gets results," he said.

He acknowledged the human cost. "This proposed next step is made from a position of strength. We recognize it will involve difficult decisions and will require support for all our people."

The CEO also set out the commercial ambition behind the savings: "We believe that Telia can perform even better, and we see an opportunity to become a leading European telco."

Savings now, charges later

The financial mechanics of the programme follow a familiar pattern for European operator restructurings: upfront charges to unlock recurring savings. Telia will book approximately SEK 600 million in charges in Q4 2026, while the SEK 1 billion in annual gross savings accrues from workforce reductions and other cost-cutting measures once the programme completes.

The deferral of most cash outflows into 2027 means the programme's full financial profile will straddle two reporting years. Union negotiations, which Telia must complete before finalising cuts, could also shift the timing of both the charges and the headcount reductions.

A competitive-market play

Hofbauer's reference to "a very competitive market" underlines the commercial pressure driving the programme. Nordic and Baltic telecom markets are saturated, with operators competing largely on price, network quality and customer experience rather than subscriber growth.

Against that backdrop, Telia's answer is structural: push decision-making closer to customers through localisation, slim the centre to strategy and oversight, and redirect resources toward what Hofbauer calls "great products and experiences for our customers."

The company frames constant improvement as an ongoing commitment rather than a one-off exercise. Whether the SEK 1 billion savings target survives contact with union negotiations — and whether localisation delivers measurable gains in a competitive market — will become clear as Telia works toward its 31 December 2026 completion date, with the bulk of the cash impact following in 2027.