Swedish telecommunications technology company Ericsson says it plans to cull 3000 jobs in its domestic operations to cut costs and operate fewer production sites.
The cuts, representing about one fifth of its 16,000-strong workforce in Sweden, will affect production plants, research and development, and administration.
The company said on Tuesday it had begun negotiations with trade union representatives.
Ericsson also planned to shed 900 consultants. The moves are part of ongoing cost-cutting moves, which include a reduction in the number of research and development sites.
"The measures are necessary to secure Ericsson's long-term competitiveness as well as technology and services leadership," said Jan Frykhammar, who took over as interim chief executive in July.
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Ericsson meanwhile plans to hire 1000 engineers in the coming three years.
The government said it had appointed two coordinators to help employees affected by the cuts. The towns of Boras and Kumla were expected to experience the main brunt of the 1000 production job cuts.
Ericsson has about 115,000 employees worldwide.
