The largest U.S. life insurer by assets, MetLife (MET), and Ford-owned (F) auto maker Volvo Cars both announced Wednesday that they will have substantial layoffs as a result of the nation's precarious economic situation.

Volvo Cars

The Ford Motor Co. subsidiary said there will be a 13% cut in its work force, comprising 3,300 employees, due to falling global demand. Of those jobs, 2,700 are in Sweden, according to an Associated Press report.

"The unstable economic environment has resulted in a very unpredictable situation, and the downturn in the global car industry is more drastic than expected," Volvo Car President and Chief Executive Stephen Odell.

In order to "meet the rapidly deteriorating market situation in the global car industry,” the Gothenburg, Sweden-based auto maker said that Volvo will cut 600 jobs abroad and terminate contracts with 700 consultants worldwide.

A Dow Jones Newswires report said these cuts are in addition to those announced in June, which resulted in a reduction of 2,000 jobs, bringing the total to 4,800.

Volvo had roughly 24,500 workers at the beginning of the year, 17,000 of which were in Sweden.

The cuts made by the company exceeded its expectations. “Given the turbulence in the world economy over the last few weeks… it is clear that further cost saving actions are necessary for the company to manage the difficult market situation,” the company said.

MetLife

In an effort to raise capital during the current credit squeeze, MetLife announced it will cut jobs, according to a Reuters report.

The company, which currently employs 49,000, did not give a specific number of jobs that would be affected.

The insurer said Tuesday it planned to sell 75 million shares to help solidify its capital position to maintain its credit rating. Insurance company ratings have been hurt during this credit crisis and keeping these ratings high is important to keep costs down.

Shares in the company dropped over 20% early Wednesday.