Telenor is beginning a country-centric restructuring program aimed at making the business less complicated and more directly aligned with customer, market and financial perspectives at group level.
Company management changes sit at the center of the move, including eliminating the Nordic Business Area layer so Nordic country CEOs join group management directly.
From Nordic Business Area to country CEOs in group management
Telenor says the planned changes remove the existing Nordic Business Area layer. In its place, Nordic country CEOs will join group management directly as part of the restructuring program.
Telenor frames the structural change as a way to keep decision-making connected to customer, market and financial perspectives rather than routing those inputs through a separate regional management layer.
Reshuffle in technology and transformation leadership
The management reshuffle includes a change in Jon Omund Revhaugs role. Telenor describes him as the current head of the Asia region and says he is set to become chief technology and transformation officer.
Telenor is also linking the overall restructuring to its operating and cash-flow objectives, including reducing administrative costs and supporting improvement in free cash flow.
EBITDA growth target tied to the restructuring
Telenor links the restructuring to its financial ambitions of low-to-mid-single-digit EBITDA growth. The company also describes the program as supporting improvement in free cash flow.
In other words, the restructuring is presented as both an organizational simplificationremoving the Nordic Business Area layerand a set of cost and cash-flow levers intended to underpin the groups growth targets.