Ericsson reported a decline in net profits for the quarter and announced plans to lay off around 1,000 employees in Sweden, due to cost-cutting measures. Some reports say the networking supplier could cut as many as 4,000 jobs worldwide over the next two years.

The company said it expects to save about $620 million annually due to the cuts.

In October, the company announced profit warnings, cut its yearly outlook and its CFO stepped down.

Net profit for the fourth quarter fell 42% to $880 billion, down sharply from $1.52 billion for the same period last year. Net profit dropped 16% for the full year, from $4.11 billion in 2006 to $3.5 billion for 2007.