Volkswagen to Cut 2,000 Jobs and Delays New Software Amid Ongoing Struggles at Cariad Unit

Delay of new 1.2 software and restructuring at Volkswagen impacts upcoming Porsche and Audi EVs; Job reductions to begin in 2024, extending into end of 2025.

• Volkswagen's Cariad unit is set to cut around 2,000 jobs and delay the release of its new 1.2 software, impacting upcoming Porsche and Audi electric vehicle (EV) models. The job reductions will begin in 2024, extending into end of 2025.
• The delay of the 1.2 software will be between 16 to 18 weeks and will affect the new Porsche Macan EV and Audi Q6 e-tron. Meanwhile, the full-scale 2.0 software platform, set to launch in 2025, is being completely redeveloped.
• The Cariad unit at Volkswagen has been experiencing issues for several years and has been perceived to contribute to the departure of former VW Group CEO Herbert Diess. Under new leadership, Cariad is attempting to improve and correct past mistakes.
• Volkswagen has hired former Tesla executive Sanjay Lal to lead a new software design hub at Cariad. The project will first be used on two EV models of Audi and VW and will later be used across all VW brands.
• Besides internal struggles, VW is experiencing external challenges with a decrease in demand for its EV models in key markets, suggesting that the company is falling behind in the digital EV era.

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