STOCKHOLM (AP) -- Wireless equipment maker LM Ericsson on Tuesday said it plans to cut almost 1,000 jobs in Sweden because an increase in production efficiency has made some work redundant.
Ericsson said negotiations have started to shut down operations in Gavle, 105 miles (170 kilometers) north of Stockholm, where it employs 856 people.
It also gave notice to 90 white-collar workers at its operations in Boras, in southern Sweden.
The main reason for the layoffs, it said, is higher production efficiency after the introduction of new and more advanced products.
"It is a tough day for us today," said Ericsson CEO Carl-Henric Svanberg. "We have to decrease the number of employees within production since the work content in our products are decreasing, while we are simultaneously growing more efficient."
Ericsson is headquartered in Stockholm and has around 75,000 staff worldwide.