Volkswagen is set to fire almost all of the executive board members of its Cariad software division. This is reported by Reuters, citing a person familiar with the situation.

The automaker is preparing for layoffs to address development issues. Cariad’s supervisory board is expected to approve the layoffs at a meeting this week. Only the head of HR, Rainer Zugehör, can remain in his position.

This division was created under the leadership of the former CEO of the VW Group, Herbert Diess. Cariad exceeded its budget, but still fell short of its goals. This led to the departure of Diess and his replacement by Oliver Blume last September.

According to a VW representative, the company is analyzing the division and its projects. He also informed about a number of decisions, but they are not personnel. Volkswagen emphasized that Cariad and vehicle software development remain an integral part of the group’s strategy.

We will remind you that problems in this division caused a delay in work on the important models of the Porsche e-Macan and Audi Q6 e-tron cars. The planned launch of enterprise-wide framework software for cars, originally designed to enable the fourth of five levels of autonomous driving from 2026, has been delayed by two years.