Volvo Cars says it will cut the night shift at its Torslanda plant in western Sweden from late December to early October due to a downturn in the global automotive industry.

The elimination of the shift is expected to affect some 700 workers and is part of a broader layoff of 1,200 employees announced in June.

“The rapid decline of market conditions in Europe over the past months, in combination with the difficult U.S. market and a slowdown of growth in emerging markets, has resulted in a significant impact on the car industry as a whole,” Volvo says in a statement.

“The effect on the premium-car market has been substantial, with sales volumes deteriorating even more rapidly than in the volume market.”

Through August, Volvo sales in the U.S. were down 39.8% to 16,794 units, Ward’s data shows.

Declining sales and rising vehicle stocks also may lead to the layoff of 900 hourly workers next year, the auto maker warns.

“We are following the development of the market place and plan production volumes accordingly,” Volvo says.

Last week, Volvo named Stephen Odell as its new president and CEO, replacing departing Fredrik Arp.