"The situation has arisen because many countries are postponing their major investments," press officer Ola Thorén told reporters.

"Our business is currently being designed for larger volume of work than we have. We regret that we are forced to lay off, but it is necessary if we are to remain competitive in the future," said Tommy Gustafsson-Rask, managing director of BAE Systems Hägglunds AB said in a press release.

The jobs are due to go in October this year.