The German automaker Volkswagen plans to release 1600 people in its software division by the end of the year. This was reported by Reuters, which referred to the German economic daily Handelsblatt citing sources from the automaker.
The Cariad Division employs approximately 5900 people. The number of disturbed jobs thus means that almost 30 % of employees will lose their jobs.
Volkswagen confirmed the information for Reuters, adding that the steps are part of the “transformation plan” developed for the Cariad Division, which they agreed in 2023. “Last year we have made the division more efficient and now we adapt the number of employees,” the company spokesman said.
The automaker also announced the results last year on Tuesday, stating that its net profit fell by almost 31 % to EUR 12.4 billion. The reason is hard competition in China and the high cost of reorganization. The company’s operating profit also decreased by 15 % to EUR 19.1 billion. On the other hand, the turnover increased by less than a percentage to EUR 324.7 billion.
