Telecoms equipment maker Ericsson is reportedly set to layoff around 25,000 employees, all outside of Sweden, as part of cost savings of 10bn SEK (£957m).

According to Swedish publication Svenska Dagbladet, citing insider sources, Sweden’s second largest company in terms of revenue is set for drastic global restructuring after a disappointing 12 or so months.

Ericsson has in the region of 109,000 employees in offices in around 110 offices around the world. It is believed that more than 14,000 employees will be safe from the chop, especially engineers in research and development, though some of Ericsson’s operations could be cut down by as much as 80 or 90 per cent. Ericsson’s Managed Services is likely to be one of the areas that is hit hard by the cuts.

“My understanding is that they have reverse calculated how much the company needs to save in order to escape the crisis while not risking a rights issue. It will be brutal,” one source told the Swedish publication.

Of the 25,000 people up for the axe, it’s not clear whether they include employees expected to leave if Ericsson sells off its media business. The information and communications technology company has already renegotiated several contracts to improve margins.

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