STOCKHOLM, Sweden — Volvo said it would cut 950 white- and blue-collar jobs in its construction equipment unit, including about 140 in North America. A spokesman at the company's North American headquarters in Asheville, N.C. minimized those cuts however, noting many were made as long ago as September.

Volvo Construction Equipment North America's recently announced move into the rental equipment industry will not be adversely affected by the latest staffing reductions the spokesman said, adding the “rental initiative is full steam ahead.”

Volvo's construction unit employs about 8,500 workers worldwide. In addition to the North American reductions, the company will lay off 600 workers in Europe, 190 in Asia, and 20 in South America. The job cuts are expected to save the firm $30 million to $40 million each year.

CEO Tony Helsham said the cuts were necessary following the “negative development in the construction equipment's major markets,” including North America and Europe.

In April, Volvo Construction Equipment North America announced it would establish a chain of franchised rental outlets focusing on compact wheel loaders and excavators. Michael Farley, Volvo's vice president of global rental, reiterated that the staffing cuts will not delay implementation of the rental program and the company still intends to have the program in place over the next three to four years.

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