Volkswagen plans to cut about 50,000 jobs by 2030; ADRs gain over 5.5%

Volkswagen AG (VWAGY) announced Thursday it will cut approximately 50,000 jobs as part of its strategic plan through 2030. The company said 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, equal to an operating profit of about €31 billion. It plans to invest €135 billion from 2027 to 2031. The company's U.S.-traded ADRs gained over 5.5% following the announcement.

The Supervisory Board asked the Group Executive Board to create a new model for decision-making and group structure at Volkswagen Group. The company said competitive production cannot currently be guaranteed for its plants in Emden, Zwickau, Hanover and Neckarsulm, and it is looking at alternative uses for these facilities.

The restructuring comes as Volkswagen grapples with one of the most difficult periods in its recent history. It lost significant ground in China, where 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, German factories running with substantial excess capacity, U.S. tariffs and intensifying competition from Asian automakers have squeezed profits. CEO Oliver Blume has argued that deeper structural cuts are necessary for Volkswagen to remain globally competitive.