Volvo axes more jobs

Volvo Construction Equipment (VCE) has cut 850 jobs in Sweden due to the slow down in the global construction equipment market, the company said in a statement.

The construction equipment manufacturer said in the statement that the job losses follow the notice of redundancy given to 500 VCE employees in Sweden earlier this year.

The weakening of the construction equipment market, which started in North America last year and later spread to Europe, has now developed into a global slow down in the construction equipment market, the statement added.

It added the global financial crisis has further accelerated the weakening of the business cycle.

Yngve Rosén, president of hauler loader business line for Volvo Construction Equipment, said, "The actions we are taking now are needed in order to adjust production capacity to declining demand and to ensure that the company is coming out stronger from this downturn."

It is estimated that approximately 10% of the additional 850 employees that have been given notice within Volvo CE in Sweden, are white-collar workers with the rest being blue collars.