Type
Internal restructuring
Country
Norway
Region
Norge;
Location of affected unit(s)
Sector
Information / Communication
Information Communication Services
Telecommunications
61 - Telecommunications

100 jobs
Number of planned job losses
Job loss
Announcement Date
3 April 2024
Employment effect (start)
1 May 2024
Foreseen end date

Description

Telenor, Norway's largest telecommunications company, has announced the downsizing of over 100 positions in a restructuring of its Norwegian organization. The restructuring affects various departments including customer service and sales, with 35 jobs being cut as the customer service center in Rørvik, Trøndelag, is closed.

The cuts are part of organizational changes aimed at responding to the rapid digital transformation and a need to adjust work methods. These changes, effective from May 1st, are justified by the company due to overcapacity in customer service. In addition to the 100 employees, Telenor intends to also significantly reduce the number of temporary staff and consultants as part of this restructuring. The decision has sparked strong reactions, especially due to the termination of employees in Rørvik while the company has recently been hiring temporary workers in other regions.

Telenor is offering affected employees the possibility of relocation to other positions within the company or severance packages with transition assistance. This move comes partly in response to union concerns about the future employability of those affected, given the high unemployment rates in some affected areas.

The restructuring has been met with criticism from employees, union representatives, and local government officials. Kenneth Pettersen, the chief union representative at Telenor Norway, criticized the company's decision as a poor response to previous criticisms of its hiring policies. May-Iren Arnøy, deputy leader of the EL &IT union at Telenor, highlighted the negative impact on the local community and questioned the company's overcapacity claims. The mayor of Nærøysund expressed disappointment and concern over the decision's impact on local employment, questioning the effectiveness of state incentives aimed at supporting jobs in district areas.

Telenor is a majority state-owned telecommunications company headquartered at Fornebu, close to Oslo. The company has a total of 11 000 employees in eight countries. The job cuts reflects the company's efforts to streamline operations through digitalization, which has led to multiple rounds of restrucutring. Previous internal restructurings were recorded in the ERM database in 2023, with 200 jobs cuts in management in Norway.


Sources

Citation

Eurofound (2024), Telenor, Internal restructuring in Norway, factsheet number 201045, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/201045.