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Volvo Cars is cutting 3,300 jobs in response to falling sales.

The cuts include the loss of 2,700 jobs in Sweden. Outside Sweden 600 staff will be laid off and 700 contracts with consultants will be terminated, the company said today.

The announcement comes on top of a reduction of 2,000 jobs and 500 consultants announced by Volvo in June and takes the total job cuts at the carmaker to 6,000 people.

Volvo sales fell by 11.7 percent in Europe to 153,751 in the first eight months and were down 25.8 percent to 50,028 in the U.S. in the first nine months.

Volvo's U.S. sales dropped 52 percent to 4,054 cars in September. European sales for September are not yet available.

Volvo CEO Stephen Odell said: "These are difficult times for the car industry in general, including Volvo. These actions are necessary to create a new and sustainable Volvo Car Corporation - a company with more focused operations and structure."

Volvo lost $271 million (187 million euros) in the first half, compared with a profit of $3 million for the same period in 2007.

For all of 2007, Volvo posted a loss of $164 million.

The layoffs at Volvo include 2,230 employees at Volvo Car Corporation in Gothenburg; 410 employees at Volvo Cars Body Components in Olofström; and 60 employees at the Volvo Cars Engine Plant in Skövde/Floby.