Ericsson AB caught everyone by surprise today with news of staff cuts in Sweden that will see more than 900 employees lose their jobs.

The majority of the cuts, which aren't part of the previously announced headcount reductions, will see 856 jobs go at a 3G base station plant in Gävle, while 90 staff are being laid off in Borås, reports The Swedish Wire.

Ericsson announced 5,000 job cuts at the beginning of 2009, including 1,000 in Sweden. Those reductions have already been made. (See Ericsson Soars on Strong Q4, Outlook.)

The Swedish giant recently announced third-quarter financial results that showed a year-on-year dip in revenues and a massive drop in profits. (See Pressure Tells on Ericsson's Q3.)

Other parts of the vendor's business are also grappling with tough trading conditions and are also reducing their staff numbers. Mobile chip joint venture ST-Ericsson has just announced that up to 600 positions could be cut, while handset firm Sony Ericsson Mobile Communications has spent 2009 implementing cost reduction plans initiated last year. (See ST-Ericsson Plans Further Cutbacks and Sony Ericsson Reports Q3.)

But Ericsson has also been adding to its staff numbers by acquiring various parts of bankrupt vendor Nortel Networks Ltd., deals that will see staff added to the Ericsson payroll, particularly in North America. (See Ericsson Buys Nortel's GSM Biz Too, Ericsson: Why We Want Nortel's Wireless, and Ericsson Delivers Knockout Blow to NSN.)

Ericsson isn't the only major vendor looking to slim down its workforce, of course: Rival Nokia Siemens Networks announced a restructuring plan a month ago that could see as many as 5,760 staff lose their jobs. (See Nokia Siemens Revamps, Cuts Jobs.)

— Ray Le Maistre, International News Editor, Light Reading