Jan. 13 (Bloomberg) -- Volvo AB, the world’s second-largest truckmaker, said it plans to cut 1,620 more Swedish jobs as the economic slowdown and credit crunch hurt sales, with no recovery in sight.

The Gothenburg, Sweden-based company has given notice of termination to 1,020 workers at its truck unit and 600 at its powertrain division, spokesman Stefan Karlsson said today in a telephone interview. The cuts mean Volvo has eliminated about 4 percent of its global workforce in four months, after announcing in September and November it was axing 2,300 jobs.

“We’re not seeing any signs of improvement,” Karlsson said. “Order intake is waning and customers are delaying orders, so we have to adjust production accordingly.”

Truck sales have suffered from a decline in business for transport companies, compounded by tougher financing conditions for those still seeking to renew fleets. Volvo announced a 25-day production halt last month after receiving 1,800 more cancellations than orders in October and November.

Volvo fell 1.9 kronor, or 4.8 percent, to 37.60 kronor in Stockholm, extending the stock’s decline this year to 12 percent and valuing the company at 80.7 billion kronor ($9.78 billion).

Including temporary workers and subcontractors, the company has eliminated 14,500 positions over the past 12 months, spokesman Marten Wikforss said today. Volvo employed 103,000 people globally as of September, according to Bloomberg data.

Under Swedish law, job cuts are definitive only after a six- month notice period has elapsed, and may be canceled if the outlook improves in the meantime.

Volvo’s sales dropped 21 percent to 19,326 trucks in November, led by its Renault Trucks brand, where orders plunged 44 percent, the company said last month.

To contact the reporter on this story: Jakob Lindstroem in Stockholm at jlindstroem@bloomberg.net

Last Updated: January 13, 2009 13:31 EST