Volkswagen Cariad Unit Faces Job Cuts: Volkswagen’s troubled software unit, Cariad, is reportedly looking to cut 2,000 jobs as part of a restructuring plan. The move comes as the company faces further delays in launching its new software architectures. According to reports, the board of directors approved the plan, with job cuts expected to be implemented from 2024 through the end of 2025.
This restructuring will not only impact the workforce but also result in significant delays for the highly anticipated new software architecture, 1.2, which was slated for the Audi Q6 etron and the Porsche Macan.
The new Level 2.0 architecture, originally planned for 2025, is also being completely redeveloped. Additionally, the scalable systems (SSP) platform, the foundation for future models, is undergoing changes, starting with the new electric Trinity.
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The plan, however, awaits approval from the works council, which has previously secured job guarantees for employees until mid-2025. The works council expressed concerns about the lack of concrete information regarding where the job cuts will occur.
A spokesperson from Cariad stated that CEO Peter Bosch has been working on a transformation plan for the company’s repositioning, with details expected to be communicated once relevant bodies pass a resolution.
This development highlights the challenges that Volkswagen faces in navigating the complex world of software development within the automotive industry. As the company seeks to modernize its vehicles and stay competitive in the market, addressing these software issues and restructuring the software unit is crucial. The job cuts and delays underscore the magnitude of the task at hand, and it remains to be seen how Volkswagen will ultimately navigate this challenging terrain.
Our Reader’s Queries
What is the news about Cariad?
Cariad, Volkswagen Group’s software unit, has committed to reducing its internal development costs by 20% each year until 2028. This move is aimed at preventing any potential layoffs that may arise from the company’s restructuring plan, as directed by CEO Oliver Blume. By taking this proactive step, Cariad is demonstrating its commitment to maintaining a stable workforce while also streamlining its operations for greater efficiency.
How does Volkswagen treat their employees?
Volkswagen Group seems to have a satisfied workforce, with 83% of employees recommending it to their friends, according to Glassdoor reviews. The company scored well in work-life balance, with a rating of 3.9 out of 5, and also received positive ratings for culture and values (3.8) and career opportunities (3.6). Overall, it appears that Volkswagen Group is a good place to work, with employees feeling content and fulfilled in their roles.
What are the demographics of Volkswagen employees?
Volkswagen boasts a workforce of over 313,000 employees, with a gender distribution of 36% women and 64% men. The majority of employees at Volkswagen identify as White, making up 54% of the workforce.
How many employees does Volkswagen Group have?
As one of the biggest private employers globally, the Volkswagen Group had a total of 675,805 employees, including the Chinese joint ventures, as of December 31, 2022. This number shows a slight increase of 0.4% from the previous year-end figure of 2021.