• Sweden edition
 
TeliaSonera to cut 2,000 jobs as earnings fall

TeliaSonera to cut 2,000 jobs as earnings fall

Published: 17 Oct 2012 08:46 GMT+02:00
Updated: 17 Oct 2012 12:53 GMT+02:00

The job cuts are part of an effort to streamline TeliaSonera's operations, CEO Lars Nyberg said in a statement.

"Our cost base is today growing at a higher rate than our revenues and we have to reverse this trend," he said.

"We have spent the last months analyzing our operation in depth. The ambition is to fundamentally change our business by simplifying our way of working."

According to Nyberg, the personnel reductions are expected to affect approximately 2,000 employees, or 7 percent of TeliaSonera's total workforce.

However, he refused to say exactly when the cuts would occur or how many of the redundancies may affect workers in Sweden.

"We have most of our employees in Sweden, to that gives something of an indication, but I don't want to speculate," he told the TT news agency.

"We need to simplify our operations and question every possible thing."

The news comes as TeliaSonera reported a 6.3 percent drop to 9.26 billion kronor in earnings excluding interest, taxes, depreciation, amortization and one-time items.

Net sales decreased 3.2 percent from 26.7 billion to 25.8 billion kronor, while pre-tax earnings for the third quarter landed at 6.61 billion kronor, down from 7.25 billion kronor in the corresponding quarter last year.

Analysts surveyed by the Reuters news agency had predicted pre-tax earnings of 6.74 billion kronor.

The group's net profit fell by 1.2 percent to 4.8 billion kronor.

That compared to a 4.86 billion consensus by analysts polled by Dow Jones Newswires, which would have represented a 1.6-percent rise.

TeliaSonera stood by its full-year outlook but said it planned to cut costs after its mobile operations experienced "weakness in service revenues in many of our markets."

But news of the job cuts came as a shock to TeliaSonera's workers.

"It's terrible," Angeta Ahlström, chair of the Unionen Tele trade union, told the TT news agency of the job cuts.

Unionen Tele has about 3,800 members and is the largest union at TeliaSonera.

"This has dropped like a bomb. No one was prepared for it," Ahlström added.

The report also made reference to an ongoing corruption probe into TeliaSonera's 2007 investment in 3G licences in Uzbekistan.

Swedish current affairs programme Uppdrag Granskning claimed in September that TeliaSonera paid a bribe worth 2.2 billion kronor ($335 million) to Takilant to obtain a 3G mobile telephone licence and frequencies in Uzbekistan, as well as a 26-percent stake in the Uzbek company Ucell.

Takilant is a Gibraltar-based, one-woman company run by 22-year-old Gayane Avakyan, whose background is in fashion and who has close ties to the daughter of Uzbek President Islam Karimov, Gulnara Karimova.

On Monday, the Stockholm District Court froze $30 million in Takilant's account at the Nordea bank while allegations of money-laundering are being investigated, it said.

"The allegations directed towards TeliaSonera are severe, although we are convinced that they are unfounded," Nyberg said in a statement.

"To clarify the factual circumstances and ascertain whether there are any grounds for the allegations, TeliaSonera has initiated an external legal review, to be presented before the end of the year. The anticorruption unit of the Swedish Prosecuting Authorities has also initiated an investigation, which we welcome and will cooperate with."

In midday trading, TeliaSonera shares were down by 1.5 percent on the Stockholm bourse, which was trading 0.2 percent lower.

Follow The Local on Twitter

Your comments about this article

Today's headlines
National
Dog attack policewoman acquitted on appeal
A scene from a video of the attack published by Dagens Nyheter

Dog attack policewoman acquitted on appeal

A policewoman accused of letting her dog attack a drunk man while she repeatedly hit him with a baton, has had her conviction overturned by a court in Stockholm. READ  

Entertainment
What's On: October 31st - November 7th
Uma Thurman will soon be on her way to Stockholm. Photo: TT

What's On: October 31st - November 7th

Halloween fun and an international film festival are the big events hitting Stockholm this week. We cast our eye over the capital and the rest of the country for the best activities to check out this week. READ  

International
Pirate Bay Swede found guilty in Denmark
Gottrid Svartholm Warg. File photo: TT

Pirate Bay Swede found guilty in Denmark

Sweden's Pirate Bay Founder Gottrid Svartholm Warg was found guilty of hacking crimes in a Danish court on Thursday. READ  

National
Malmö loses out as rare toads move in
The European green toad. Photo: H. Krisp (WikiCommons)

Malmö loses out as rare toads move in

After a rare species of toad moved into southern Sweden's Malmö, builders have had to tone down massive expansion plans in the area. READ  

Politics
Palestine recognized as state by Sweden
Palestinians in Gaza last month. Photo: Adel Hana

Palestine recognized as state by Sweden

The Swedish government has officially decided to recognize Palestine, with the move announced in a speech by the country's new Foreign Minister Margot Wallström. READ  

Interview
Stockholm's shocking take on Halloween
For ten days, Globen is transformed into a giant pumpkin. Photo: Shockholm

Stockholm's shocking take on Halloween

American Bill Schacht missed the spooky outfits, family feasts and charity events he associated with Halloween when he moved to Sweden. So he did something about it. The Local meets the founder of the capital's annual Shockholm parade. READ  

Business & Money
Huge losses for energy giant Vattenfall
A Vattenfall plant in Germany. Photo: TT

Huge losses for energy giant Vattenfall

Swedish energy company Vattenfall has reported losses for the third quarter in a row. READ  

International
Malala donates prize winnings to Gaza
Malala receives the Children's Prize from Queen Silvia. Photo: TT

Malala donates prize winnings to Gaza

UPDATED: Girls' rights champion Malala Yousafzai, who was in Sweden to accept the World's Children's Prize on Wednesday, said she would use all her winnings to help rebuild schools in war-ravaged Gaza. READ  

Swedish Honeymoon Killing
Cape Town 'fixer' phoned Dewani before killing
Dewani in a Cape Town court. Photo: TT

Cape Town 'fixer' phoned Dewani before killing

A man jailed for killing British businessman Shrien Dewani's wife during their Cape Town honeymoon said on Wednesday they spoke shortly before the murder to discuss payment. READ  

National
Bus drivers hit by racist and sexist messages
An SL bus in the Swedish capital. Photo: TT

Bus drivers hit by racist and sexist messages

Police are investigating after several bus drivers were forced to read "highly inappropriate" messages sent through the Stockholm bus network's internal communications network. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Business & Money
Get your own office in Gothenburg or Stockholm - free for a day
Gallery
People-watching: October 30th
National
Sweden remains fourth best for gender equality
National
Timeline: Julian Assange sex allegations
Sport
World Cup ski race on 'fake' Stockholm slope
Blog updates

29 October

Scariest day (Blogweiser) »

"This is what’s frightening me on Halloween. http://www.youtube.com/watch?v=D4OFZVCu8J0&list=UUJu5J7jG4uoYSjWbpFsJBuQ Follow my posts on FB. ..." READ »

 

24 October

Editor’s blog, October 24th (The Local Sweden) »

"Hi readers, Get ready to read our weekly digest of Swedish news in less than 60 seconds. The..." READ »

 
 
 
Society
An Arctic tradition: hunting and handicraft
Society
Stockholm taxis offer free therapy sessions
National
The Local meets Health Minister Gabriel Wikström
Gallery
Property of the week: Österåker
Society
Homeless turtles get Stockholm police ride
National
Construction worker has 'Sweden's best beard'
National
Italian musician jazzes up Sweden's Lapland
Gallery
Zlatan's career in pictures
Finest.se
Gallery
People-watching: October 25th and 26th
Lifestyle
'Swedes are funnier than they think'
National
Swedish town 'like Venice' after heavy rains
Lifestyle
What's On in Sweden: October 24th - 31st
Gallery
People-watching: October 22nd
Gallery
In Pictures: Prince Carl Philip and Sofia Hellqvist
Lifestyle
Eight things to love about renting a Swedish apartment
National
Vasa ship cannon blasted in Sweden
National
Sub hunt: Day-by-day
National
Sub hunt: Stockholm islanders share their fears with The Local
Sponsored Article
The best options for oversea transfers
National
Dentist gives free care to Roma beggars
Gallery
Property of the week: Malmö
Gallery
PHOTOS: 'Foreign activity' in Swedish waters
TT
Society
QUIZ: How good is your Swedish?
Society
The nudity... and nine other things expat men notice in Sweden
Gallery
People-watching: October 15th
Gallery
Your views: Should outdoor smoking be banned in Sweden?
Business & Money
Sweden has 'large hole' in finances
Sponsored Article
Introducing... Finding a job in Stockholm
Society
Monster salmon caught in northern Sweden
Gallery
Property of the week: Lorensberg
National
Scandinavia's child bride
National
Ebola crisis: How is Sweden preparing?
Business & Money
How Sweden is becoming a cashless society
Gallery
Stockholm Burlesque Festival 2014
National
How a little red horse became a symbol for Sweden
Gallery
People-watching: October 12th
Business & Money
The hottest start-ups from southern Sweden
National
Stockholm is 'best' region for well-being
Gallery
People-watching: October 8th
National
Five facts to know about Patrick Modiano
Sponsored Article
How to catch the first lobster of the year
Team SCA
Sponsored Article
All-female SCA team takes off on Volvo Ocean Race
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

994
jobs available
Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit:
www.swedishdowntown.com
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at:
http://psdmedia.se
If you want to drink, that’s your business.
If you want to stop, we can help.

Learn more about English-language Alcoholics Anonymous in Sweden. No dues. No fees. Confidentiality assured.
AA-EUROPE.ORG/SWEDEN