Published by Jessica Weisman-Pitts
Posted on October 27, 2023
2 min readLast updated: January 31, 2026
BERLIN (Reuters) -Volkswagen wants to cut 2,000 jobs at its troubled software unit Cariad as part of a restructuring plan which will see its long-awaited new software architectures delayed even further, news outlet
BERLIN (Reuters) -Volkswagen wants to cut 2,000 jobs at its troubled software unit Cariad as part of a restructuring plan which will see its long-awaited new software architectures delayed even further, news outlet manager magazin reported on Friday.
The board of directors approved the plan at a meeting on Wednesday, with an aim for job cuts to take place from 2024 until the end of 2025, manager magazin said, citing leading managers at the group.
A new software architecture, 1.2 – to be implemented in the Audi Q6 etron and the Porsche Macan – will be delayed by 16-18 weeks, the report said, while the next level 2.0 architecture originally planned for 2025 is being completely redeveloped.
The new scalable systems (SSP) platform, which all future models were to be based on starting with the new electric Trinity, was also being redeveloped, it added.
However, the plan still requires approval from the works council, which has negotiated job guarantees for workers until mid-2025.
“We don’t accept this method of cutting jobs across the board. There is no concrete information on where positions should be cut in terms of structure and tasks,” a Volkswagen works council spokesperson said.
A Cariad spokesperson declined to comment on the article, but said Cariad CEO Peter Bosch has been working on a “comprehensive transformation plan” for “repositioning” the company since the summer.
“The transformation planning is in its final stages and will be communicated once the relevant bodies have passed a resolution,” added the spokesperson.
The unit – set up under former VW group CEO Herbert Diess -has exceeded its budget and repeatedly missed targets for model and software launches.
Volkswagen appointed Bosch, formerly Bentley production chief, as head of the unit earlier this year in an effort to get Cariad back on track.
(Writing by Miranda Murray, Editing by Friederike Heine, Kirsten Donovan)
Software architecture refers to the high-level structure of a software system, defining its components and their interactions. It serves as a blueprint for both the system and the project developing it.
A works council is a representative body of employees in a company, established to negotiate and discuss workplace issues, including job security, working conditions, and employee rights.
A software unit is a division within a company that focuses on developing software products or services, often encompassing various teams responsible for design, development, testing, and maintenance.
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