Volkswagen has decided to reduce the number of employees at its ‘Software’ unit, Cariad, with an expected 1,600 jobs to be lost.
Given that Cariad currently has around 5,900 employees, this means that almost a third of the workforce will be affected.
The layoffs will take place through a voluntary redundancy program and it is likely that affected employees will be offered compensation to leave their jobs.
German business newspaper Handelsblatt first reported the news, and Volkswagen later confirmed it.
The company explained that the decision is part of a plan they are introducing in 2023 to improve Cariad’s performance.
Volkswagen wants to make its software division more efficient by cutting costs and relying on internal talent.
