Volkswagen wants to cut 2,000 jobs at Cariad unit

© Reuters. FILE PHOTO: Volkswagen logo is pictured at the 2022 New York International Auto Show, in Manhattan, New York City, U.S., April 13, 2022. REUTERS/Brendan McDermid/File Photo

BERLIN (Reuters) – Volkswagen (ETR:) wants to cut 2,000 jobs at its troubled software unit Cariad as part of a restructuring plan, business news outlet manager magazin reported on Friday.

The board of directors approved the plan at a meeting on Wednesday, with cuts to begin in 2024, reported manager magazin, citing leading managers of the group.

Cariad CEO Peter Bosch “has been working on a comprehensive transformation plan for the repositioning of CARIAD” since the summer, said a Volkswagen spokesperson, who did not confirm the reported layoffs.

“The transformation planning is in its final stages and will be communicated once the relevant bodies have passed a resolution,” added the spokesperson.

The unit – set up under former VW group CEO Herbert Diess -has exceeded its budget and failed to meet goals, resulting in costly delays to model launches.

Volkswagen appointed Bosch, formerly Bentley production chief, as head of the unit earlier this year in an effort to get Cariad back on track.

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