Volkswagen Jobs Cut of 2000 workers from 2024: Volkswagen is embarking on a significant restructuring effort that will see around 2,000 jobs being trimmed from its software unit known as Cariad.
This move comes as the division has faced challenges, including budget overruns and missing important milestones, resulting in costly delays for new suv and car model launches.
Cariad was initially established under the leadership of former VW group CEO Herbert Diess, with the mission to develop a unified software platform for all Volkswagen brands.
What is Volkswagen CARIAD?
CARIAD is an automotive software company that is part of the Volkswagen Group. It aims to build a unified technology and software platform, including a vehicle OS, vehicle cloud platform, and a new unified architecture for all of Volkswagen Group’s brands. The company’s mission is to make automotive mobility safer, more sustainable, and more comfortable for everyone.
Currently, CARIAD is working on creating and building a design system solution. It will be generic for systems and applications, which brands can tailor and customize according to their needs and individual design needs.
It is also partnering with YouTube to bring the world’s biggest video platform to customers of the Volkswagen Group brands.
Where is Volkswagen CARIAD located?
CARIAD is located in Wolfsburg, Niedersachsen State (Lower Saxony), Germany and has software research, development and competence centers situated in –
- Wolfsburg, northern Germany;
- Silicon Valley and greater Seattle area, USA and
CARIAD Automotive and Automobile Software Solutions:
CARIAD was established in 2020. It totally works as Car based software organisation. Its work profile is based on developing automotive and automobile technology solutions for big automobile brands such as Volkswagen, Porsche and Audi. The main focus area of CARIAD is on building –
- Unified software platform for all Volkswagen brands including Audi and Porsche;
- Creating and building Tech Stack;
- Automotive cloud;
- Vehicle virtual and digital experience;
- Automated driving experience and learning;
- Building a uniform operating system (OS) with a uniform E/E architecture;
- Vehicle digital systems including driving assistance systems, a uniform infotainment platform, highly advanced automated driving functions, and a third-party application store.
How to apply for CARIAD Jobs:
Currently, there are around 5500 employees working with CARIAD. To check and apply for jobs and career options in Volkswagen CARIAD, you can visit here – CARIAD Jobs & Career.
Now moving back onto the Volkswagen jobs cut and Volkswagen layoffs.
Volkswagen Jobs Cut and Transformation Plan
While Volkswagen has not yet officially confirmed these job cuts, layoffs and job reductions, a spokesperson revealed that CEO Peter Bosch has been diligently working on a comprehensive transformation plan to reposition Cariad since the summer.
This plan is in its final stages and will be presented once it receives approval from the necessary governing bodies.
The board of directors, in a recent meeting, gave the green light to the plan, and the aim is to begin implementing these job cuts from 2024 through to the end of 2025, as reported by manager magazin, citing top managers within the company.
Volkswagen Jobs Cut Impact on Software Development
As a result of these changes, the development of a new software architecture, known as 1.2 and intended for use in the Audi Q6 etron and the Porsche Macan, is anticipated to face a delay of 16-18 weeks.
Additionally, the next-generation architecture, originally planned for 2025 (referred to as 2.0), is undergoing a complete redevelopment. The new scalable systems (SSP) platform, set to underpin all forthcoming models, starting with the new electric Trinity, is also undergoing redevelopment.
However, it’s important to note that this plan still requires approval from the works council, which has previously secured job guarantees for workers up until mid-2025.
A Volkswagen works council spokesperson emphasized concerns regarding the lack of concrete information about where positions would be cut in terms of structure and tasks.
Challenges and Industry Implications
The challenges faced by Cariad highlight the hurdles, Volkswagen encounters in developing its software solutions and has with its creative and technical capabilities. With rising competition from automakers such as Tesla, who have heavily invested in software development, and criticism for the slow roll out of electric vehicles heavily reliant on software, Volkswagen is adjusting its course.
Volkswagen Jobs Cut Impact on Automotive Software Industry
The job reductions at Cariad may also have broader implications for the automotive software industry.
Volkswagen CARIAD is one of the largest employers of software engineers in the automotive sector, and these job cuts could potentially lead to a shortage of skilled workers and skilled professionals.