Sources say Cariad, Volkswagen's software division, plans to cut 2000 jobs, and the release of the new software architecture will be delayed.

CTOnews.com Volkswagen wants to lay off 2000 jobs in its troubled software division Cariad as part of a restructuring plan that will result in further delays in the new software architecture, German magazine Manager reported on Oct. 28.

The board approved the plan at Wednesday's meeting, with the goal of cutting jobs from 2024 to the end of 2025, Manager magazine quoted key executives of the group as saying.

CTOnews.com notes that the new software architecture 1.2, which will be implemented in Audi Q6 etron and Porsche Macan, will be delayed by 16-18 weeks, while the next architecture 2.0, originally planned for 2025, is being completely redeveloped.

The new Scalable System (SSP) platform is also being redeveloped, and all future models will be based on it, starting with the all-new Trinity electric car, the executives said.

However, the scheme still needs approval from the Labour Board, which has negotiated employment security for workers until mid-2025.

A Volkswagen union spokesman said: "We do not accept this approach to across-the-board job cuts. There is no specific information on which jobs should be cut in terms of structure and tasks. "

A Cariad spokesman declined to comment but said Cariad CEO Peter Bosch had been working on a "comprehensive transformation plan" since the summer to "reposition" the company. "The transformation plan is in its final stages and will be communicated after the relevant bodies adopt resolutions," the spokesman added.