Telia Lietuva's Strategic Reorganisation: Enhancing Competitive Edge Through Digital Transformation and Operational Efficiency

Telia Lietuva's strategic reorganisation of its Technology unit, announced in late 2025, represents a pivotal shift in the company's approach to digital transformation and operational efficiency. By merging its Technology and Digital Transformation units with Legal and Human Resources departments, the company aims to streamline operations, reduce managerial overhead, and accelerate innovation in a rapidly evolving telecommunications landscape. This reorganisation, coupled with significant investments in infrastructure and workforce realignment, positions Telia Lietuva to strengthen its long-term competitive advantage while navigating the challenges of a digitally driven market.

Operational Efficiency: Streamlining Structure and Workforce

The reorganisation is designed to eliminate redundancies and improve cross-functional coordination. According to a report by , Telia Lietuva has merged its Technology and Digital Transformation units with Legal and Personnel departments, reducing the number of top management positions by two and cutting 59 roles in the Digital & Technology unit. These cuts, driven by the adoption of AI and automation, are offset by the creation of 16 new positions in critical areas such as Telia Global Services Lithuania and Telia Lietuva, focusing on competencies vital for future growth.

This structural simplification aligns with broader Telia Company Group initiatives to flatten hierarchies and enhance agility. As stated by , the reorganisation reflects a commitment to "simplify processes and improve organizational flexibility," a strategy that has already yielded financial benefits, including increased revenue and adjusted EBITDA. For instance, in Q3 2025, Telia Lietuva reported a 3% year-over-year revenue increase to €125.3 million, with EBITDA margins reaching 40.7%-a testament to its ability to balance cost discipline with strategic investment.

Competitive Advantage: Infrastructure and Innovation

Telia Lietuva's competitive edge is further bolstered by its focus on technological modernisation. The company is upgrading its fiber-optic backbone network to support 600 Gbps data transfer speeds, enhancing network resilience and enabling advanced services such as real-time messaging during calls. These upgrades, combined with the introduction of cybersecurity solutions like "Telia Safe," underscore the company's commitment to differentiating itself in a crowded market.

Financial metrics reinforce this advantage. Over the first nine months of 2025, Telia Lietuva's adjusted EBITDA grew by 9.5% to €148 million, while profit for the period increased by 25.5% to €67.7 million. Such performance is underpinned by strategic investments in 5G expansion, which now covers 95% of Lithuania, and a change program aimed at improving service offerings. These initiatives not only enhance customer retention but also position Telia Lietuva to capture emerging opportunities in enterprise IT services and digital security.

Leadership and Future Outlook

Leadership changes, effective 1 February 2026, including the role swap between Elina Dapkevičienė and Lina Bandzinė, signal a focus on aligning executive expertise with evolving priorities. This shift, alongside the integration of AI-driven solutions to reduce operational costs-evidenced by a 3.3% year-on-year decline in cost of goods and services in Q3 2025-highlights Telia Lietuva's adaptive approach to leadership and technology.

For investors, the reorganisation's emphasis on efficiency and innovation presents a compelling case. The company's ability to maintain profitability while investing in future infrastructure-such as its 5G and cybersecurity initiatives-demonstrates a balanced strategy that prioritizes both short-term gains and long-term resilience. With free cash flow rising by 8.3% to €91.1 million in the first nine months of 2025, Telia Lietuva's financial flexibility further supports its capacity to sustain growth in a competitive market.

Conclusion

Telia Lietuva's strategic reorganisation of its Technology unit is a calculated move to enhance operational efficiency and secure a lasting competitive advantage in the digital transformation era. By streamlining operations, investing in cutting-edge infrastructure, and realigning leadership, the company is not only optimizing its cost structure but also future-proofing its position in Lithuania's telecommunications sector. For investors, the combination of robust financial performance and forward-looking strategies makes Telia Lietuva a compelling long-term opportunity.