EMCC European Monitoring Centre on Change

TeliaSonera

Company/Organisation:
TeliaSonera

Geographic Location

Country: European Union
Location of affected unit(s): Finland, Sweden

Company

Sector: Information / communication
Telecommunications
61 - Telecommunications
Number Employed: 17000
Group: TeliaSonera Group

Employment Effects

Announcement Date: 24-07-2008
Planned Job Reductions min: 2900
Planned Job Reductions max: 2900
Type of Restructuring: Internal restructuring
Foreseen End Date: 31-12-2009

Additional Information

TeliaSonera, the largest telecommunications service provider in the Nordic Countries, announced on 8th of February 2008 to start planning personnel negotiations on cutting up to 2,900 jobs - most of them by the end of 2008. On 24th of July 2008 TeliaSonera announced that the reductions will be made during 2008 and 2009. The company calculates that about 1,000 jobs will be cut in Finland, and close to 2,000 in Sweden to improve the efficiency of production structure toward mobile communications and IP-based services. The efficiency measures that it plans to enact in Sweden and Finland are aimed at bringing savings of more than EUR 500 million this year and next. TeliaSonera's turnover grew last year by less than six per cent to 96.3 billion Swedish krona, or about EUR 10 billion. The operating margin weakened by three percentage points to 32 per cent last year. The Board of Directors of TeliaSonera proposes a dividend of EUR 0.44 for last year. The previous year's dividend was EUR 0.69. The Union of Salaried Employees has raised the possibility of a strike against the job cuts at Finland's Sonera. According to union chairman Antti Rinne, Sonera employees are already suffering from the effects of a heavy workload. Rinne also pointed out that the Finnish state holds 14 per cent of TeliaSonera's shares. TeliaSonera employs nearly 11,000 people in Sweden, and about 6,000 in Finland.