German automaker Volkswagen AG VWAGY is reportedly planning a significant workforce reduction at its software division, Cariad, as a part of a broader restructuring strategy.
The company's board has approved the strategy in a recent meeting, aiming to initiate the reductions from 2024, according to a report from Reuters, which cited manager magazin.
The CEO of Cariad, Peter Bosch, has spearheaded a wide-ranging overhaul for reorienting Cariad's direction since mid-year, the report cited a spokesperson from Volkswagen and added that the final blueprint for the revamp is still in the works.
"The transformation planning is in its final stages and will be communicated once the relevant bodies have passed a resolution," said the company's spokesperson, as per the report.
Formed under the guidance of ex-VW group CEO, Herbert Diess, Cariad grappled with overshooting its budget and not achieving set targets that led to expensive postponements in rolling out new vehicle models.
In response, Volkswagen named Peter Bosch, previously the production chief at Bentley, to helm Cariad and steer it towards stability earlier this year.
Price Action: VWAGY shares are trading lower by 0.87% at $11.20 on the last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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