Telecom operator TeliaSonera has given notice to 1,200 employees in Sweden, it announced on Monday, as the recession continues to claim its victims.
Just like all traditional operators, TeliaSonera is under pressure from trends including lower broadband tariffs and a move to mobile and IP (Internet Protocol) based services from fixed telephony, which is its main revenue source.
The layoffs are being made because the company cannot have higher structural costs than competitors, according to a statement.
The personnel cuts are part of a plan announced by TeliaSonera last February. The goal is to reduce its staff by 2,900 employees and save approximately 5 billion Swedish kronor (US$609 million).
A spokesman said 1,300 had already left the company by the end of the September.
At that time TeliaSonera had about 32,000 workers -- of which 11,000 were based in Sweden.
But all is not bad: Customers still haven't changed their behavior because of the downturn. They are still interested in broadband and mobile services, a spokesman said.
Restructuring costs are expected to be about 3 billion Swedish kronor.