According to a report by business news source manager Magazin on Friday, Volkswagen (VOWG_p.DE) intends to eliminate 2,000 positions at its struggling software division, Cariad, as part of a restructuring strategy.
At a meeting on Wednesday, the board of directors accepted the proposal, with cuts scheduled to start in 2024, according to manager Magazin, who cited top group managers.
A Volkswagen spokesman declined to confirm the alleged layoffs. Still, he stated that Cariad CEO Peter Bosch “has been working on a comprehensive transformation plan for the repositioning of CARIAD” since the summer.
“The transformation planning is in its final stages and will be communicated once the relevant bodies have passed a resolution,” said the spokeswoman.
Herbert Diess, a former CEO of the VW Group, founded the unit, which has overspent its budget and fallen short of targets, leading to costly delays in releasing new models. Earlier this year, VW made Bosch, the former head of Bentley’s manufacturing, the head of the division in an attempt to turn Cariad around.
In the automotive sector, where businesses always look to improve their competitiveness and adapt to new market realities, workforce modifications are a recurrent subject. The sector’s workforce demands are changing due to the move towards electric and digital technology.
Volkswagen’s contemplation of layoffs at its Cariad division indicates the business’s dedication to coordinating its activities with market and industry developments. Automakers must continue to succeed in the future by making the most use of their resources and adjusting to new technology as the automotive industry changes.
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