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BackCariad plans to cut around 1,000 positions
Cariad plans to cut around 1,000 positions
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Die Zeit1 hour agoBusiness1 min readGermanyView original

Cariad plans to cut around 1,000 positions

cariadVolkswagenjob cuts

Quick Look

  • According to reports, the VW software subsidiary Cariad is planning to cut around 1,000 jobs, which corresponds to almost a quarter of the approximately 4,300 employees.
  • The reduction is intended to ensure competitiveness compared to external software providers and is currently being negotiated with employee representatives.
  • Cariad had previously made job cuts after replacing leadership in 2023 and changing strategy.

AI-generated summary

Why It Matters

Cariad is the software subsidiary of the Volkswagen Group and was originally intended for the internal development of large parts of the vehicle software. Due to problems with key projects, which also delayed model launches, leadership was replaced in 2023 and the strategy changed. Under CEO Oliver Blume, VW is increasingly relying on collaborations with external partners such as Xpeng and Rivian, while Cariad is concentrating on key areas such as driving dynamics software, cloud applications and infotainment.

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VW software subsidiary Cariad is reportedly facing major job cuts.

As the dpa news agency reported, citing company circles, around 1,000 jobs are to be cut. This would affect almost a quarter of Cariad's approximately 4,300 remaining employees.

As the Handelsblatt reported, the company is said to have informed employees at a works meeting on Wednesday about, among other things, job cuts. This is necessary in order to maintain competitiveness compared to external software providers, it is said with regard to participants.

According to information from the dpa, it was still unclear by when and how the jobs would be cut. Negotiations will now be held with employee representatives. Collective agreements were also terminated. A spokesman for the VW software subsidiary did not want to comment on this when asked.

Cariad has already cut jobs several times

Cariad's software solutions are used throughout the VW Group. The subsidiary was originally supposed to develop large parts of the software itself. Due to problems with important projects, which also delayed the launch of individual models, the car company replaced the leadership of Cariad in 2023 and changed course.

Unlike his predecessor Herbert Diess, VW CEO Oliver Blume relies on cooperation with external partners such as Xpeng in China or Rivian in the USA when it comes to software. Cariad is now focusing, among other things, on the in-house development of key technologies such as driving dynamics software, cloud applications and infotainment systems.

Open Questions

  • By when should the job cuts be completed?
  • How should the jobs be reduced (e.g. layoffs, partial retirement)?
  • How exactly should competitiveness against external providers be increased?
  • What are the specific consequences of terminating collective agreements?

Related Topics

cariad
PeopleOliver BlumeHerbert Diess
OrganizationsCariadVolkswagen AGdpaHandelsblatt
PlacesGermany
TopicsVolkswagenjob cutssoftware developmentcompany meetingcollective agreementsoliver flower
This article was originally published by Die Zeit.

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