Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Volkswagen plans job cuts, further launch delays at software unit -manager magazin

Published 27/10/2023, 15:00
Updated 27/10/2023, 16:02
© Reuters. FILE PHOTO: Volkswagen logo is pictured at the 2022 New York International Auto Show, in Manhattan, New York City, U.S., April 13, 2022. REUTERS/Brendan McDermid/File Photo

BERLIN (Reuters) -Volkswagen wants to cut 2,000 jobs at its troubled software unit Cariad as part of a restructuring plan which will see its long-awaited new software architectures delayed even further, news outlet manager magazin reported on Friday.

The board of directors approved the plan at a meeting on Wednesday, with an aim for job cuts to take place from 2024 until the end of 2025, manager magazin said, citing leading managers at the group.

A new software architecture, 1.2 - to be implemented in the Audi Q6 etron and the Porsche (ETR:P911_p) Macan - will be delayed by 16-18 weeks, the report said, while the next level 2.0 architecture originally planned for 2025 is being completely redeveloped.

The new scalable systems (SSP) platform, which all future models were to be based on starting with the new electric Trinity, was also being redeveloped, it added.

However, the plan still requires approval from the works council, which has negotiated job guarantees for workers until mid-2025.

"We don't accept this method of cutting jobs across the board. There is no concrete information on where positions should be cut in terms of structure and tasks," a Volkswagen (ETR:VOWG_p) works council spokesperson said.

A Cariad spokesperson declined to comment on the article, but said Cariad CEO Peter Bosch has been working on a "comprehensive transformation plan" for "repositioning" the company since the summer.

"The transformation planning is in its final stages and will be communicated once the relevant bodies have passed a resolution," added the spokesperson.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

The unit - set up under former VW group CEO Herbert Diess -has exceeded its budget and repeatedly missed targets for model and software launches.

Volkswagen appointed Bosch, formerly Bentley production chief, as head of the unit earlier this year in an effort to get Cariad back on track.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.