Ericsson, the world's largest manufacturer of telecoms networking products, has confirmed it will cut almost 1,000 jobs from its operations in Sweden.
The company will close its entire base in Gavle, Sweden with a loss of 856 jobs. It will also cut a further 90 from its Boras facility.
A statement from Ericsson said: "The rationale for today's proposal is that Ericsson is introducing a new generation of products with more advanced components. This means that less work is required to produce each unit and simplified mode of operation and thereby there is a shortage of work."
Ericsson has just won the auction for Nortel's CDMA and LTE assets, which the latter was forced to sell after filing for bankruptcy back in February of this year.
Yet even with this money free for acquisitions, Ericsson has been making strong efforts to cut costs, announcing earlier this year it had plans to make cuts amounting to 10 billion Swedish Kronor (0.9 billion).
