Swedish internet agency Framfab has announced that it is to sack 340 staff in its home country to focus on overseas operations.
The internet design and consulting company says there is insufficient business to justify the staff, though it does see potential in the Swedish market.
The company, which employs over 2,500 people in 59 offices globally, said it still intends to carry on worldwide expansion, but to concentrate on professional services.
The redundancies will cost the company £9m but savings in a full year are expected to be £16m. Eight offices in Sweden are to close.
Marketing and investment business areas will be phased out and investment will be concentrated on the Framfab labs, to develop new concepts and products for the internet.
The company intends to continue to focus on key sectors including, automotive, healthcare, telecoms, finance and consumer goods.
By Geoffrey Davies