Ericsson plans to cut its workforce in Italy by around 600 employees as the struggling vendor continues its restructuring and cost-cutting.

The Swedish company did not specify what type of roles were under threat but told staff it was a “tough decision”. In a statement, it promised to begin negotiations with union representatives in due course and said it was “committed” to working with them to find a reasonable outcome.

Ericsson employs approximately 3,500 people in Italy.

The cuts come after CEO Börje Ekholm announced in July that the company needed to speed up its cost reduction programme as it looks to hit annual saving targets of at least SEK10 billion by mid-2018.

Ekholm said at the time that the axe would fall on service delivery and common costs.

The vendor made a loss of SEK1 billion in the three months to June on revenues that fell eight percent to SEK49.9 billion.

This followed losses of SEK10.9 billion and SEK1.6 billion in Q1 and the last three months of 2016 respectively.

Ericsson sold its power modules arm to electronics manufacturer Flex in June, and is still looking to offload its media and IT cloud infrastructure hardware businesses as it looks to get back on a sound financial footing.

Ekholm unveiled a profitability-based turnaround plan in March, which refocuses the company on three specific areas: networks, digital services and the Internet of Things.

Read more: Ericsson Chairman to stand down at end of term

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