Through this program, the group aims to maximize the value of its network infrastructure and services to sustain growth, increase efficiency, profitability and improve its ability to serve customers.
The group will decentralize most of the activities of the common units and move decision-making to each country. However, the company’s companies will continue to be able to benefit from regional contracts that benefit customers and the benefits of economies of scale.
The company’s president and CEO Patrik Hofbauer says that this is a difficult but necessary decision that is needed to ensure the company’s long-term success: “This change will not only lead to simpler and faster decision-making and their implementation, but will help grow the business, continue to successfully invest in the best network and technology, ensuring a deserved return for shareholders”.
It is estimated that the restructuring costs of the entire group of companies will reach 1.4 billion in the second quarter of 2024. Swedish kroner (SEK), and annual savings of 2.6 billion are expected. SEK – at today’s exchange rate, this would amount to 123 million SEK respectively. and 229 million euros. The estimated costs of the change program will not affect the company’s planned financial prospects this year.
More powers for Lithuania
“The announced change in the group’s business model gives us an opportunity to make strategically necessary decisions in Lithuania, the benefits of which we will see in the near future,” says Giedrė Kaminskaitė-Salters, head of “Telia Lietuvos”. the best talent – this is our path to a leading organization. However, growing investments and talent retention also lead to the need to optimize the number of jobs: by the end of the year, we plan to eliminate several hundred positions at Telia Lietuva. We have started consultations with the trade unions of Telia Lietuvos regarding the dismissal of employees, and we will provide all kinds of support and proper severance pay to the people who are leaving.
Talks with trade unions in Lithuania are expected to be completed by mid-October, and the company’s new organizational structure with fewer employees should come into effect from December this year. Currently, Telia Lithuania employs about 1,900 employees.
The head of the company notes that the company has invested more than 1.8 billion in Lithuania during the year of its operation. euros and is the leader in network and customer quality service in the country. The company was also the first to install all the latest communication technologies in Lithuania. “We have one niche in this success puzzle where we are not the best – our stock returns and cash flows are not optimal in the market.” And these are necessary conditions for our further investments, to ensure the quality of network services and service”, said G. Kaminskaitė-Salters.
According to her, Lithuania is rapidly climbing the labor reward ladder in Europe, so in the future it will have to compete not only on the price of its talent services, but above all on quality and exceptional competences.
The transition of the group of companies to a fully decentralized operating model shows confidence in the country’s leadership and gives us even greater authority to define and implement our business strategy in Lithuania. There will be fewer of us inside the organization, but we will be faster, more flexible and much more independent,” said G. Kaminskaitė-Salters.
The costs of the Telia Lietuvos reorganization change program in 2024 will reach about 1 million. EUR 6.3 million is expected to be saved annually. Euros.
2024-09-05 07:10:29