Investing.com -- Volkswagen announced Thursday it will cut approximately 50,000 jobs as part of its strategic plan through 2030. The cuts are based on a company-wide survey of future staffing requirements.

The automaker set a financial target of achieving a 9% operating return on sales by 2030, which equals an operating profit of about €31 billion. The company plans to invest €135 billion from 2027 to 2031.

The Supervisory Board asked the Group Executive Board to create a new model for decision-making and group structure at Volkswagen Group.

Volkswagen said competitive production cannot currently be guaranteed for its plants in Emden, Zwickau, Hanover, and Neckarsulm. The company is looking at alternative uses for these facilities.

The company's U.S.-traded ADRs gained over 5.5% following the announcement.

The restructuring comes as Volkswagen grapples with one of the most difficult periods in its recent history. The automaker has lost significant ground in China, once a major engine of its growth, as domestic manufacturers such as BYD have gained share with lower-cost electric vehicles and faster product cycles. Volkswagen lost its position as China's top-selling automaker in 2024 and slipped to third place in 2025.

At home, high labor and manufacturing costs have compounded the pressure as Volkswagen's German factories operate with substantial excess capacity. Management has already proposed cutting production capacity and sharply reducing the number of models it sells, while U.S. tariffs and intensifying competition from Asian automakers have further squeezed profits. CEO Oliver Blume has argued that deeper structural cuts are necessary for Volkswagen to remain globally competitive.