Finnish telecommunications company Elisa has started change negotiations that may lead to up to 450 job reductions across its operations. Approximately 400 positions in Finland are at risk according to the company's announcement.
The negotiations are expected to conclude by the end of the year. Elisa aims to simplify operations and improve productivity through these measures.
CEO Topi Manner stated the program is designed to accelerate their growth strategy implementation. He noted the company is taking determined actions to improve competitiveness in the current market environment.
The restructuring program targets annual cost savings of approximately €40 million. This comes despite the company reporting positive financial results in its most recent quarter.
Elisa's comparable operating profit grew nearly 2% to €139 million in the third quarter. Revenue increased about 5% to €561 million during the same period.
Strong performance in mobile services and international software services drove this growth. Fixed network services also returned to revenue growth after previous declines.
The company acknowledged numerous uncertainties in the general economic environment. It also noted that competition in Finland's telecommunications market remains intense.
For the full year, Elisa expects revenue to remain at last year's level or show slight improvement. The job cuts represent a difficult balancing act between maintaining profitability and workforce stability in challenging market conditions.