STOCKHOLM, Sweden (AP) -- Sweden's Volvo AB said Thursday it planned to slash 850 more jobs at its construction equipment unit because of a slowdown in the market.
The company, which also makes trucks and buses, previously had announced it would cut 500 jobs from the construction unit.
It has also given notice to 1,400 workers at truck plants in Belgium and Sweden because of falling demand in Europe.
Volvo said the latest round of layoffs would affect workers at four plants in Sweden, and that negotiations with unions would start immediately.
The construction equipment unit makes excavators, loaders, pavers and other construction vehicles. It has about 16,000 employees.
Yngve Rosen, a manager at the unit, said the job cuts were needed "to adjust production capacity to declining demand and to ensure that the company is coming out stronger from this downturn."
Volvo sold its car division to U.S.-based Ford Motor Co. in 1999.