Volkswagen Group's software unit CARIAD has announced a restructuring of its software operations around artificial intelligence, including about 1,600 job cuts, according to automotive industry reporting.

The move, announced on October 2, is aimed at improving the group's technology, development speed and cost efficiency. The company is focusing on four AI-based platforms covering driver assistance, cloud, infotainment and vehicle software, changing how vehicle software is developed across the group.

CARIAD has struggled for years with delays and cost overruns in Volkswagen's software-defined vehicle programs. The restructuring comes amid broader talks with unions over the company's future direction.

Separately, reports say Volkswagen may select the British autonomous-driving company Wayve for its future autonomous driving technology, while CARIAD would focus more heavily on selected areas such as infotainment. Volkswagen is also developing its next generation of software-defined electric vehicles jointly with Rivian, reshaping how responsibilities are divided within the group's software operations.

Reporting based on: www.marklines.com, evmagz.com.