Swedish heavy vehicles maker Volvo has announced 850 job cuts in its construction equipment unit following a decline in demand for the products globally.
"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," Volvo Construction Equipment President, Hauler Loader Business Line, Yngve Rosn said.
Earlier, Volvo Construction Equipment had slashed 500 jobs in Sweden and now will show pink slips to additional 850 employees.
All Volvo Construction Equipment's locations in Sweden have been affected and negotiations with unions have immediately started.
The statement said that global slowdown in construction equipment market, which started in North America during last year, has now spread to Europe.