Telenor to cut 15% more jobs by 2023

The move is part of its cost cutting measures.

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Over the last four to five years, telecom company, Telenor, has cut 22 per cent of jobs, in addition to acquisitions and divestment. Now, it plans to slash about 15 per cent more jobs in the next three years. This means, about 3,000 full-time employees may be rendered jobless.

The Norwegian multinational telecom company expects revenue growth of up to two per cent ever year, till 2022 with these cost cutting measures and with the launch of 5G networks as well as a hike in annual dividends.

Downsizing, automation, closure of copper networks and improvement in the efficiency of other technology will result in savings to the tune of $322 to $430 million annually, by the end of 2022.

It is predicted that there will be a growth of up to two per cent in the revenue from subscriptions and telecoms traffic on Telenor networks, whereas operating expenses will dip by one to three per cent per year.

Telenor has 186 million mobile phone customers across nine countries in northern Europe and Asia. Since 2017, the Company has been trying to cut costs and improve cash flow to facilitate payment of bigger dividends.

The cost cuts forecast by Telenor are rather huge, while it aims to maintain its capital expenditure at approx. 15 per cent of sales.

In January, Telenor had witnessed a rise in profits in the fourth quarter, much beyond expectations. It had hoped to see its underlying earnings growing by between two and four per cent in 2020 after a dip in 2019.

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