by Admin
11/03/2025
Volkswagen plans to lay off 1,600 employees at its Cariad software unit by the end of the year, impacting nearly 30% of Cariad’s 5,900-strong workforce.
These layoffs will primarily occur through redundancy programs.
An emailed statement released by the automobile company confirmed the implementation of a “transformation plan” for Cariad, agreed upon in 2023.
A company spokesperson noted that last year, efforts were made to enhance the organization’s efficiency as an internal software solutions developer, leading to the current changes in employee numbers.
This development follows earlier reports demonstrating Volkswagen’s intention to cut 2,000 jobs at Cariad as part of a restructuring plan, which has also led to delays in the launch of new software architectures.
Software version 1.2, intended for models like the Audi Q6 e-tron and Porsche Macan, has been delayed by 16 to 18 weeks.
Cariad was established to unify software and technology platforms across Volkswagen Group brands and has faced challenges, including budget overruns and missed deadlines for model and software launches.
In response, Volkswagen appointed Peter Bosch, formerly Bentley’s production chief, to lead the unit earlier this year to realign its objectives.
The structural adjustment aims to streamline operations and improve efficiency within Cariad, aligning with Volkswagen’s broader strategy to enhance its software development capabilities.