"You have to adjust to reality," Haakan Samuelsson said in an interview, cited by news agency AFP.
A spokesman for the company, Per-Aake Froeberg, told Swedish radio that "by the end of the year, there will be 1,000 fewer of us."
The company axed 1,100 positions last year, most of which were in its assembly plants. By contrast, most of those affected by Wednesday's announcement would be white collar workers, SVT said.
Volvo Cars said in September it employed 22,400 people.
The troubled car maker will soon launch a SKR1.5bn (EUR178m or US$239m) cost cutting drive, after sales dipped 18% in January, the Swedish broadcaster wrote on its website.
The Gothenburg-based company sold 422,000 cars in 2012, which was 6% fewer than the year before. The European market was especially tough, dipping by 10%.
Geely acquired Volvo Cars in 2010 and the brand has since seen its market share decline and profits dwindle.
This QUBE report from just-auto report provides a comprehensive overview of the global electric vehicles and OE starter battery sector, major suppliers, top 14 markets, technology trends and market si...
The media days for the 2013 Frankfurt Internationale Automobil-Ausstellung (IAA) are 10 & 11 September. Each of the following vehicles is a world premiere at the show....
Zhejiang Geely says that it will supply some 500 London Taxi TX4s to the municipal authority in Nanjing....
Volvo Cars saw global sales rise 14% in July to 33,650 compared to the same month last year on the back of strong growth in China and a healthy performance in Europe....
General Motors has hired former Volvo CEO Stefan Jacoby to head up international operations. He replaces Tim Lee, who will take up the position of chairman, GM China....
The long awaited free trade agreement between Colombia and Europe will start on 1 August with the first group of measures....
Sales growth of 34% in the first half of this year has catapulted Suzuki into the UK top 20, ahead of Volvo and Mazda and nibbling at the heels of Renault....
- THE WEEK THAT WAS - Scion and Ford workers' chop
- Clio R.S. 220 Trophy & future Renaults
- January 2016, management briefing (Part 2)
- THE WEEK - New car, mergers, results, Iran
- Yanfeng Automotive Interiors VP Q&A
- Ford Europe looks to cut staff
- Daimler posts record sales – investors unimpressed
- New Ford plant for Mexico & Prius rival - report
- Geneva premieres list - Bentley Mulsanne facelift
- Volvo nixes range extenders