Norwegian energy company Lyse is cutting 140 positions at its telecommunications subsidiary Lyse Tele. The job reductions represent 15 to 20 percent of the unit's workforce. This marks one of the largest workforce reductions in Lyse's corporate history.
The cuts follow substantial financial losses in Lyse's telecom operations. The company has lost nearly one billion Norwegian kroner over the past two years. Rising costs and weaker earnings drove the decision.
Company executives held a digital meeting with employees on Thursday. They informed staff about the restructuring process and next steps. The company aims to create a simpler and more efficient operating model.
Kristin Dahle Larsen, Lyse's telecom director, explained the rationale in a statement. She said the company has gained valuable experience over the past eighteen months. Now they need to realize identified organizational synergies.
Lyse Tele currently faces significant investment demands. The company is expanding national mobile coverage and digitizing value chains. Meanwhile, profitability challenges stem from increasing competition, high costs, and market changes.
The fiber industry is transitioning from expansion to management phase. This shift requires different employee competencies than previous growth periods. The company must reduce costs and organize more effectively to strengthen competitiveness.
Lyse's telecom ambitions began in 2022 when it acquired Norwegian operator Ice. The purchase valued Ice at approximately 5.5 billion kroner. This acquisition allowed Lyse to offer both fiber and mobile networks to customers.
Two years later, Lyse conducted a major merger. They combined Altibox, Ice, Lyse Fiber and Signal Bredbånd under the Lyse Tele umbrella. The consolidated entity now offers mobile broadband, telephone services, fiber, TV, entertainment services, mobile networks and fiber expansion.
Despite substantial revenue growth, the financial results remain deeply negative. Annual reports show the company has accumulated nearly one billion kroner in losses over two years. The current restructuring represents a necessary but painful adjustment to market realities.
Norwegian telecom sector faces intense competition from Telenor, Telia and other providers. Market consolidation continues as companies seek scale advantages. Lyse's workforce reduction reflects broader industry pressures beyond company-specific challenges.
What does this mean for Lyse's remaining employees and customers? The company insists its main focus now involves supporting affected workers through the transition. Service quality should remain stable as the organization streamlines operations. But such substantial workforce reductions inevitably create uncertainty about future strategic direction.
The Norwegian labor market generally provides strong worker protections. Affected employees will receive support through transition programs. Still, finding new positions in specialized telecom roles presents challenges in today's economic climate.