Ericsson will reduce its headcount in Sweden by around 1,700 as part of a global cost and efficiency program.
The company said it is eliminating around 2,100 positions as part of the program, and around 1,700 of the employees in these positions will be leaving the company.
The cutbacks form part of an effort to save around 9 billion kronor ($1.09 billion), with savings starting to be felt towards the end of the year and coming into full effect from 2017.
The company expects to incur restructuring charges of around 2.5 billion kronor for the second quarter from the headcount reductions as well as from normal ongoing restructuring activities.
Ericsson separately revealed a collaboration with Scuola Superiore Sant'Anna in Pisa to study photonic components, modules and subsystems expected to play a key role in 5G development.
The collaboration will focus on the development of cost-effective optical fronthaul and backhaul RAN solutions and ultra-high speed data center interconnectivity.
Announcing the agreement, Ericsson said optical technologies will need to evolve to support a growing and increasingly demanding mobile customer base.
"Ericsson and Scuola Superiore Sant'Anna have a long history of successful cooperation and we share the belief that connectivity benefits people, business, and society by improving the quality of life and thereby contributing to sustainable development for all,” Ericssson president of region Mediterranean Nunzio Mirtillo said.