Telia, a Swedish telecom company, will lay off 3,000 workers.

Telia, a Swedish telecom company, announced on Wednesday that it will eliminate 3,000 positions as part of a cost-cutting initiative that is expected to save the company $250 million annually.

According to the corporation, the layoffs were a necessary component of an organizational reform that will allow it to pay investors dividends.

In addition to making Telia simpler and faster in terms of decision-making and commercial execution, chief executive Patrik Hofbauer stated that the changes “will help us to grow our business and generate enough cash so that we can make necessary investments and cover our dividend, as we remain committed to our dividend policy.”

According to the firm, “Telia aims to reduce its headcount by 3,000 positions during 2024,” or around 15% of its personnel, subject to union discussions.

The majority of the reductions are anticipated to occur in Estonia, Finland, Lithuania, and Norway, where Telia also operates, with over half falling in Sweden.

Telia stated that it anticipates incurring additional costs of $135 million in the second half of the year due to the reorganization, even though the reductions are eventually anticipated to save about $250 annually.

Telia reported slightly greater revenue of $8.5 billion last year, but a net profit of just $87 million.