Volkswagen (ETR:VOWG_p) software division, Cariad, has reached a significant agreement to reduce its internal development costs by 20% annually until 2028, in an effort to avert compulsory layoffs. This decision comes as part of a major restructuring initiative led by CEO Oliver Blume. The plan includes offering voluntary buyouts if the cost reduction targets are not met, though a specific timeline for these buyouts has not yet been announced.