Volkswagen to Lay Off 1600 Employees at Cariad Software Unit

Major Workforce Reduction

Volkswagen plans to lay off 1,600 employees from its Cariad software division by the end of the year. This move will impact nearly 30% of the 5,900-strong workforce, as reported by Handelsblatt.

Restructuring Through Redundancy Programs

The layoffs will primarily take place through redundancy programs as part of Volkswagen’s ongoing restructuring efforts. The company has confirmed this information and stated that the decision aligns with a previously agreed-upon transformation plan.

Volkswagen’s Official Statement

In an emailed response, Volkswagen stated that it had already taken steps to make Cariad more efficient as an internal software solutions provider. The company is now adjusting its workforce to align with improved in-house performance.

Background and Challenges at Cariad

Cariad has faced difficulties in software development, including delays and budget overruns. These challenges have affected key projects, such as the software architecture for upcoming electric vehicle models, including the Audi Q6 e-tron and Porsche Macan EV.

Future Outlook

The restructuring of Cariad is expected to impact Volkswagen’s long-term software and electric vehicle strategies. The company continues to focus on improving efficiency and meeting development targets amid ongoing industry challenges.

“Volkswagen to Lay Off 1600 Employees at Cariad Software Unit”