COPENHAGEN (Reuters) - Sweden's Ericsson on Monday said it would lay off about 1,200 employees in Sweden as a way of cutting costs, citing a challenging mobile networks market and lower volumes this year.

After a few years of high demand for 5G equipment, buying by telecom providers has slowed, prompting firms such as Ericsson and Nokia to lay off thousands of employees to save costs.

Ericsson has begun negotiations with unions, it said in a statement.

The company had told Reuters in January it could look at further cost cuts this year including layoffs but without giving a specific number.