Ericsson Chief Executive Carl-Henric Svanberg attends a news conference in Stockholm Jan. 21, 2009. Ericsson's fourth-quarter earnings beat expectations, helped by a weak Swedish crown, and the firm promised deeper savings including 5,000 job cuts as the recession hits demand.

STOCKHOLM, Jan. 21 (Xinhua) -- Swedish wireless equipment maker Ericsson announced Wednesday it would lay off 5,000 employees worldwide for further cost savings following a substantial fall in profit.

The company's net income in 2008 was 11.3 billion kronor (1.4 billion U.S. dollars), 48 percent less than 2007, although net sales were 11 percent up from 2007, according to the annual report of Ericsson.

So the company will continue carry out cost-cutting programs in 2009 and annual savings of 10 billion kronor (1.2 billion dollars) are expected by the second half of 2010, Ericsson said in the report.

Cost reductions will be achieved through reduction of the number of consultants and other temporary staff, consolidation of R&D sites and layoffs. These activities will result in a reduction of the number of employees by some 5,000, the company said.

At the end of 2008, Stockholm-based Ericsson had over 78,000 employees worldwide.