“We have a suit that is way too big and will reduce our volume by between 15 and 20 percent next year,” said CEO Magnus Carlander to the TT news agency.

The company has a total of 5,300 employees around the world.

The redundancies will affect 350 of the 3,200 company’s Sweden-based employees.

“We have a situation which has never occurred previously. We have a major weakening of the economy rolling in and the situation is really hard to predict,” said Carlander, who doesn’t expect his company to lay off any more workers in Sweden.

A total of 290 of the announced job cuts will affect workers in Gothenburg, while the remainder of those to be let go are stationed in Skövde, Eskilstuna, and Köping in central Sweden, as well as Olofström in the south of the country.

Volvo IT serves primarily as Volvo AB’s internal IT supplier, providing its parent with everything from computing operations for development to IT systems maintenance.

The company also counts Ford-owned Volvo Cars and other large manufacturing companies among its customers.

“We’ve been working since last summer to cut costs and now we must unfortunately reduce the size of our staff,” said Carlander.

Technicians, programmers, project leaders and systems analysts will be affected by the layoffs, the first of which are expected to take place in the early spring.