Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Cariad, the German software subsidiary of Volkswagen operating in the automotive sector, has announced plans to cut around 1,600 to 1700 jobs, representing nearly 30% of its workforce, across several locations in Germany including Berlin, Wolfsburg, Ingolstadt and Mönsheim.
The restructuring is expected to be completed by the end of 2026 as part of a transformation programme initiated in 2023, aiming to improve efficiency and align the company’s role within the Volkswagen Group, with a stronger focus on external partnerships, particularly with companies such as Rivian and Xpeng, while mainly affecting administrative and coordination roles rather than core software developers.
The job reductions are planned to be implemented through voluntary measures such as severance packages and early retirement schemes, with compulsory redundancies excluded under an employment protection agreement valid until 2029. The job cuts are coming in addition to Volkswagen’s major restructuring programme, due to begin at the end of 2024, under which a total of 35,000 jobs are to be cut across the entire Volkswagen Group [Volkswagen 2024 - DE] (https://apps.eurofound.europa.eu/restructuring-events/detail/202150).
The works council has strongly disputed the announced scale of job cuts, stating that no concrete numbers of dismissals have been agreed on. Ongoing negotiations focus on voluntary programmes and additional employment safeguards, with employee representatives warning that broad staff reductions could jeopardise key project delivery targets.
Cariad employs around 5,900 people, and has faced ongoing challenges in recent years due to delays and inefficiencies in software development, prompting a strategic shift under CEO Oliver Blume.
Eurofound (2025), Cariad , Internal restructuring in Germany, factsheet number 204459, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/204459.
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