Volkswagen plans to cut 1,600 jobs at its troubled Cariad software division by the end of the year, representing nearly 30% of the unit’s 5,900-person workforce¹. According to a report from Handelsblatt business daily, these reductions will primarily be implemented² through redundancy programs.

The German automaker confirmed these moves in an emailed statement, framing the decision as part of a “transformation³ plan” for Cariad that was agreed upon in 2023.

“Last year, we already made the organisation⁴ more efficient as an internal software solutions developer with higher in-house performance and are now also adjusting the number of employees accordingly,” a Volkswagen spokesperson said.

VW’s software ambitions have come at a steep price. Cariad has reportedly lost $7.5 billion over last 3 years of operation, becoming a significant financial drain on the automotive giant.