Telenor Group has detailed its strategy for the next two and a half years (up to the end of 2022), forecasting flat to modest subscription and traffic revenue growth, and further cost-cutting measures which will likely result in loss of around 3,000 jobs, says Mobile World Live.
In a presentation released at its capital markets day, Telenor said that it is expecting subscription and traffic revenue to increase by 2 percent at most over the period, while it is targeting a net operating expenditure reduction of between 1 percent to 3 percent.
Other goals include a capex-to-sales ratio of 15 percent, in line with its previous forecast, a target it aims to maintain despite the ongoing investment in expanding its 5G networks.
The company said that it expects to cut around 15 percent of its workforce over the next three years, equating to 3,000 jobs, as it steps-up “critical competency development”.
Planned staff reductions add to a broader 22 percent cut implemented between 2015 and 2019.
In addition to lowering its headcount, Telenor outlined numerous measures it will take to generate savings, including digitalizing its operations through automation and shutting-down copper networks.
Telenor is targeting net savings of between NOK3 billion ($323.3 million) to NOK4 billion ($431.1 million) per year up to end-2022.
Sigve Brekke, CEO and President said that continuing to modernize Telenor “will be essential in order to stay relevant for customers”, as he targets success at home and abroad.
Solid growth opportunities in emerging Asia, and the strong customer demand for adjacent services in the Nordics is expected to be supportive of revenue growth.
Telenor added that it is targeting carbon natural business operations in the Nordic region and a 50 percent reduction of carbon emissions from its Asia operations by 2030