Norwegian incumbent says digitalisation requires new skills, more cost-effective operations.

Telenor this week said it will cut 170 jobs at its Norwegian operation, as the telco restructures in line with its digitalisation strategy.

The incumbent said its operations and IT divisions will be merged into its technology division, and that it will merge the sales and customer service functions at its TV and broadband division.

"We are working to establish new competencies in the company to meet the rapid technological development," said Berit Svendsen, CEO of Telenor Norway, in a statement on Thursday.

The changes are due to take effect from 1 April, and are in line with Telenor’s transformation from a traditional telco to a digital service provider, the company said, which requires new skills and more cost-effective operations.

The axed staff will be offered severance packages and restructuring aid.

"Our main priority going forward is to ensure an orderly process with good information to our employees who will be affected," Svendsen said.

Telenor Norway employs approximately 3,900 staff across 24 offices. Telenor said no office closures will be made as a result of the restructuring.