TeliaSonera plans to eliminate 2,000 jobs to save $301 million in 2 years
Telecom Lead Europe: TeliaSonera is planning to eliminate 2,000 jobs.
Nordic and emerging markets telecoms operator is planning to save 2 billion crown ($301.17 million) in the next two years by reducing the jobs.
Its third-quarter core profit was below expectations.
The Stockholm-based company said in a statement that job cuts are equivalent to 7 percent of the total workforce.
TeliaSonera made more than 60 percent of its revenue in Nordic countries last year and is expanding its high-speed mobile broadband network across the region to attract consumers using 4G-enabled mobile phones and tablets.
Profit has benefited from double-digit growth in the Eurasia unit, which includes mobile operations in Turkey, Russia and several former Soviet Union countries.
TelniaSonera on Wednesday said net sales decreased 3.2 percent to SEK 25,842 million from SEK 26,707 million.
Net income decreased 1.2 percent to SEK 4,803 million from SEK 4,863 million.
During the quarter the number of subscriptions grew by 4.0 million in the consolidated operations and by 1.4 million in the associated companies. The total number of subscriptions was 180.0 million. ·
There is no change in Group outlook for 2012.
“The third quarter was similar to the second quarter in terms of operating trends. Our revenues in local currencies were at the same level as last year. Although Eurasia continues to deliver double-digit growth and Broadband Services reports a moderate decrease, we are experiencing weakness in service revenues in many of our markets within Mobility Services,” said Lars Nyberg, president and CEO of TeliaSonera.
To improve business, TeliaSonera also announced that Tero Kivisaari has taken up the responsibility for Business area Mobility Services in addition to his role as head of Eurasia.