The layoffs, which will affect 70 production workers, are in its Dynamics business area, which is located in Karlskoga, Sweden, and which produces weapons systems.
Saab pointed to "lower activity and a decline in global defense spending" as the reasons for letting the workers go.
"Budget constrains in several countries affect all defense and security companies, including Saab," said Goergen Johansson, senior vice president of the Dynamics business area. "For us to remain one of the most cost-effective companies in the industry, we must continuously adjust our operations.
"As an employer we take responsibility for our employees and will support those affected."
Earlier this year -- in connection with a January-June 2013 interim report -- Saab announced measures would be taken to increase overall company efficiency.
Additional details on the union or unions it is conducting negotiations with were not disclosed.
Exploding whale video goes viral on Internet
Couple mistakenly served bag of cash at McDonald's drive-thru