The cuts are expected to take place in manufacturing sites in the cities of Bora and Kumla, according to the paper. This move will officially put an end to 140 years of production for the company in Sweden.
The cuts are part of Ericsson’s previously announced cost and efficiency program that it first revealed in 2014. That program is intended to save the company $1.05 billion by year-end 2017. In July the company announced further actions to reduce costs. The program is progressing according to plan, but is not yet finished, Ericsson said in a prepared statement.
Shutting down manufacturing in Sweden is expected to save the company 3 billion Swedish crown, just under $350 million, the paper said.
The most affected area in the company will be in its network division, the company’s largest business area, Reuters reported, citing Swedish newspaper Svenska Dagbladet.
Ericsson has been struggling with several quarters of poor earnings. The company reported a 24 percent drop in second-quarter net profits. Nevertheless, the equipment maker believes its business will turn around when wireless operators start making investments in 5G. The company is involved in several U.S. 5G trials including tests with AT&T, Verizon, and Sprint.