Volvo spokesman Morten Wikfors says the layoffs will affect 900 permanent workers in Sweden and 100 in North America.
He said Tuesday a large number of consultants and others on temporary contracts will also receive notices.
Among other things, Volvo Powertrain makes engines and gear boxes for trucks.
The Volvo group has previously announced layoffs of 1,400 workers at truck plants in Belgium and Sweden and 1,350 workers at its construction unit.
It has more than 100,000 employees worldwide, including its subsidiaries Renault Trucks, Mack Trucks and Nissan Diesel.
