Ericsson says it's laying off 3,000 workers in Sweden and downsizing operations as part of its global plan to cut costs by 9 billion kronor ($1 billion) in 2017.
The Swedish networks company says the job cuts will be in research and development, sales and administration. It employs 16,000 people in Sweden.
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The company said "technology shifts" were behind the layoffs.
It also said Tuesday that it will recruit 1,000 people in R&D in Sweden during the next three years to meet the demands of new technologies and increase its software portfolio.
CEO Jan Frykhammar said the company would continue to have "a strong focus "on research and development and that the cost cutting measures were necessary "to secure Ericsson's long term competitiveness as well as technology and services leadership."