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Volvo construction equipment unit cutting 350 jobs

STOCKHOLM (Reuters) - Swedish truckmaker Volvo's construction equipment unit VCE has given notice to 350 staff in Sweden because of falling demand this autumn.

"We have earlier laid off contractors and temporary employees and now we, unfortunately, need to reduce the permanent staff," VCE spokesman Magnus Baarnhielm said on Monday.

Sales at VCE, whose products include wheel loaders, crawler excavators and pavers, fell 9 percent to 13.3 billion crowns ($2.0 billion) in the third quarter.

Volvo said in its quarterly report it expected further pressure on VCE's profit due to a weak global economy, high inventories in the sector and increased price competition.

($1 = 6.7323 Swedish crowns)

(Reporting by Veronica Ek; Writing by Anna Ringstrom; Editing by Dan Lalor)