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 software division of Volkswagen, a German car manufacturer, announced 1,000 job cuts in Germany as part of a broader restructuring. There is no clear timeline for this yet.
Cariad develops software for autonomous driving, assistance systems, infotainment, cloud systems, and chassis software. The software division needs to comply with drastic cost-cutting measures imposed by Volkswagen and streamline its operations. The company says it is increasingly relying on artificial intelligence to cut personnel costs. Reducing personnel costs also helps the company remain competitive compared to other software manufacturers.
It is still unclear when and how the jobs will be cut. Negotiations with employee representatives on this matter are now set to begin. The company's management has also terminated collective agreements. The layoffs target the company’s IT and software development units across Germany.
The IG Metall and the works council have criticised the management's conduct and the layoffs. The IG Metall points out that an agreed moratorium on layoffs for operational reasons should stay in effect until 2029. According to statements of the IG Metall, the number of current layoffs could exceed 1,000. They argue that previous cost-cutting measures will result in the elimination of another 400 positions. In addition, 200 positions for AI specialists are to be created, but 200 positions will be cut elsewhere to make up for them.
Cariad has around 4,300 employees in Germany. The current layoffs therefore affect a little less than a fourth of all jobs. However, the number of layoffs might still be higher.
In the past, the company has already been affected by large-scale layoffs. Cariad had around 6,500 employees at the end of 2023: Cariad 2025 - DE.
Eurofound (2026), Cariad, Internal restructuring in Germany, factsheet number 301260, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/301260.
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