Currently reading: VW software developer Cariad cuts costs to avoid lay-offs
Agreement will allow firm to cut development costs by 20% annually amid struggles to develop unified software

Volkswagen Group’s embattled Cariad software unit has agreed to cut development costs in order to avoid mass lay-offs, according to reports.

Cariad boss and former Bentley production head Peter Bosch had wanted to cut up to 20% of the unit’s 6500-strong workforce, according to an October report from Germany’s Manager Magazine.

However, the new agreement between management and labour unions will enable Cariad to cut 20% of its costs annually by 2028, Bloomberg reported, citing a Cariad spokesperson.

Cariad has struggled in its mission to deliver a unified software platform for use across all Volkswagen Group brands as part of the group’s mission to digitise vehicles.

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