The German car manufacturer Volkswagen is trying to save money and reduce its costs, cutting even the infamous Cariad software department – the company has agreed with employee representatives on upcoming cost reduction measures.
The Cariad division was created to develop software for the vehicles of the VW group and reduce Volkswagen’s backwardness, but the results have been disappointing and Cariad is unable to live up to the expectations placed on itself.
The agreement between the two parties provides for a 20% cost reduction for Cariad. The statement indicated that Cariad would not rush to lay off people, but would instead seek to negotiate compensation through a mutual agreement to terminate employment.
Currently, the Cariad department employs approximately 6,500 people, but it is not known how many will try to reach an agreement on leaving. It has previously been reported that VW wants to reduce the workforce by at least 2,000 people in order to reduce costs. As previously mentioned, the Cariad division has not been able to meet the set goals and software development is delayed, thus delaying the arrival of new machines to the market. The head of the group, Olivers Blume, made changes directly at the head of the department, but the next steps are still unclear.
2023-12-17 08:00:00
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