VW's software unit CARIAD is preparing to lay off 2,000 people

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2,000 Job Positions Will Be Eliminated at Cariad

Volkswagen Group needs to invest in software to compete with Stellantis, which owns brands such as Jeep, Peugeot and Fiat. For this purpose, the company had established a software unit called Cariad. However, since the expected efficiency could not be achieved in this unit, the company decided to undertake a major restructuring. In line with this decision, 2024 job positions will be eliminated at Cariad from 2025 until the end of 2,000.

New Software Architectures Will Be Delayed

The restructuring process at Cariad will not be limited to the loss of jobs. Same zamAt the same time, it will also affect the release dates of the new software architectures developed by the company for new electric vehicle models. In particular, the new 6 software architecture, designed for important electric models such as the Audi Q1.2 E-tron and Porsche Macan, will be ready 16-18 weeks later than planned.

New Technology Is Completely Reimagined

Another aspect of the restructuring process at Cariad was that the company changed its plans for new technology. The company decided to completely redesign the new technology, which it calls 2.0 software architecture. This technology would help the Volkswagen Group maintain its leadership in electric vehicles. However, what is this technology? zamIt is not yet clear when it will be ready.

Restructuring Plan Pending Approval

The restructuring plan at Cariad has not been finalized yet. The approval of workers' representatives is needed to implement this plan. In this process, negotiations are being held with workers about providing job guarantees until mid-2025. Additionally, paying compensation to employees who will be laid off and helping them find new jobs is also on the agenda.

Cariad's Future is Uncertain

The team led by Cariad's new CEO Peter Bosch is working on a comprehensive transformation plan to shape the future of the company. Bosch focuses on developing strategies to increase the company's competitiveness and implement new software projects. However, due to the difficulties and uncertainties encountered in this process, question marks arise over Cariad's future and competitiveness in the software field.