Swedish telecoms group Ericsson plans to cut some 2,200 jobs as part of a major cost-cutting and restructuring exercise, the company said yesterday. Its "cost and efficiency" program, first announced in November, "includes both headcount reductions as well as savings in external costs across the company's operations globally," a statement said. Ericsson employs nearly 120,000 people worldwide. CEO Hans Vestberg told TT news agency, "there are two reasons [for the cuts]. On the one hand, a structural change in production and research and development; on the other, improvements in efficiency." The group intends to save approximately 9 billion kronor through 2017, Wednesday's statement said. In January, Ericsson said its net profit plunged 35 percent in the fourth quarter of 2014, dragged down by falling demand in its key market, North America. Profits slumped 35 percent to 447 million euros in the period.