German car maker Volkswagen plans to cut 2,000 jobs in its software unit. But analysts predict the layoffs could further delay the unveiling of the company’s much-anticipated new software architecture project. News Reuters.
Volkswagen’s board members agreed to layoffs this week. The process could continue from 2024 to 2025, said top executives of the group. The new software architecture project is known as 1.2. It will be used in the Audi Q6 Itron and Porsche Macan.
In the meantime, there have been discussions on guaranteeing employment for workers till mid-2025. “We do not agree with this method of retrenchment,” expressed concern of the Volkswagen Works Council spokesperson. No specific information has been given so far about which level of the organization the workers will be retrenched.
Earlier in March this year, the company had announced the establishment of a new battery production center in Canada. North America’s first battery manufacturing facility is set to be built in St. Thomas, Ontario. It is also reported that the production will start by 2027.