Car - VW software subsidiary Cariad wants to cut costs by 20 percent
The VW software subsidiary Cariad has reached an agreement with its works council on an efficiency program. Internal costs are to be reduced by 20 percent by 2028, the company announced on Thursday. The staff reductions required for this are to take place without redundancies via severance payments. In return, job security will be extended until 2029. The company left open how many of the 6500 jobs could be cut. "There is no headcount target," said a spokesperson. "It's not about heads, but about costs." The efficiency program is to start on 1 May.
The measures include restructuring. This should make the company faster and more efficient, said the spokesperson. As a result, many savings will already be achieved. In addition, Cariad wants to get by with fewer expensive contract developments and use more purchased standard solutions in addition to in-house developments. Only then will a decision be made as to how much of the planned savings will have to be made through personnel.
The efficiency program is part of the so-called performance program that Volkswagen Group CEO Oliver Blume has prescribed for all Group subsidiaries. Cariad had been negotiating this with the Works Council since mid-November.
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Source: www.stern.de
